DAY 27 UPDATE: Saturday, 05-Mar-2005 12:08 PM
Another weekend and I had a thought... Just finished removing a few inches of snow off the walkway and while doing it I got this idea:
To share in essence a compounding event that I have been working on since the beginning of Jan. 2005.
Here .... fingers need to warm up! I type about 70 words a min, but now I need to warm up first...Ok. Done.
Anyway, starting off in 2005 I started updating my stock site, www.nextsuperstock.com, with my stock picks. As part of that effort, I also picked a speculative pick or two that I invested in with options. The first set bought in mid. Jan. (about the 12th or so) was AAPL (Apple Computer) options that returned 400%+ before I closed them. The options were purchase right before Apple announce 4th quarter 2004 earnings. I knew they would blow away the estimates. They did. Then I sold them before the stock split.
I had estimated AAPL would reach $110 a share (before the split in price), so I had purchased CALLS with a STRIKE PRICE of $80 and they expired in April -about 3 months out. I had also purchased $60 call options that were to expire at the same time. My objective was not to hold them 'til the end, but to CLOSE THEM OUT when the time was right.
The time was right when APPLE hit about $89 per share. I sold.
Then I took the proceeds, waited and pulled out about 55% of the amount and put back about a bit less than that in HOV (Hovnanian Enterprises) options. HOV is a home builder that is growing very fast and taking advantage of the trends in the USA.
My expectation from past experience with HOV is that I can once again get about 200% or even 300% out of the options in the next 6 weeks and move on to the next investment.
OR if things turn south for HOV, exit fast! So far, so good.
Part of the reason I am doing this is to practice for when I have the funds to take the P31 STEPS in the 20's and keep building them.
By practicing now with funds I already have I can make sure to make the real STEPS work well and share with my readers the best I can.
Plus this idea also breaks up the lack of CONCRETE PROGRESS that I had *expected* and found far too distant as I am now stuck at STEP 10 or so and I need to prove some things.
The "proof" is on-going and the work is going well. All can be seen and read about at www.nextsuperstock.com.
End of thought. A good weekend. Sam.
