×
Menu
Search

Take Profit On VFC And RIG



Pin It


Dec 15 2006
Facebook
Twitter
Digg
Pinterest
Linked In
Decided to lock-in my profit yesterday, 14-Dec-2006, on one of my favorite stock, Transocean Inc. (NYSE : RIG, quote) in following of my previous article Time To Relook At Oil Stocks dated 30-Nov-2006. Several reasons stated such as weather condition, U.S. inventories of crude oil and possible reaction of OPEC towards weakening dollar contributed to the decision to take position in energy / oil-related stocks.

The reason I like Transocean is the volatility of this share which can be very rewarding if you leverage your investment with option. In this case, my entry was Feb-2007 75.0 Call Option, giving me 3 months of time-value of which I’m comfortable with in-line with the facts that traditionally energy stocks are bullish during winter-period.

I still have positions is other energy-related stocks which have not yield the profits to my satisfaction yet. Hopefully I can cash it out before the coming Christmas.

V.F. Corporation (NYSE : VFC, quote) position was the pre-earning announcement position deployed with details here. I still can remember the day when VFC beat earning estimate and Nollenberger raises their target on VFC to $83 from $76. It was the same day where Google (Nasdaq : GOOG, quote) beat its’ earning and earned the multiple upgrade from analysts of which made me some good money as well.

But you’ll never know how the market will behaves. VFC gapped-up as expected on the morning, 20-Oct-2006, after the earning result but it was for a very short-period before turns to red.

And for the next couple of days, my position of Feb-2007 75.0 Call Option was in red. It’s very important that you do your research and invest only in fundamental stock as the fair value of a good stock will always be reflected given the time. As such, I rang the register on 12-Dec-2006 as the profit met my target. Based on the chart on the left, can you see what will happen if only I hang-on for another 2 more days? I would have gain more profits – but I always smile and tell myself “Bull and Bear make profit, Pig gets slaughtered”.

Other Articles That May Interest You …



Pin It

FinanceTwitter SignOff
If you enjoyed this post, what shall you do next? Consider:



Like FinanceTwitter Tweet FinanceTwitter Subscribe Newsletter   Leave Comment Share With Others


Comments

Add your comment now.

Leave a Reply

(required)

(required)(will not be published)