BAGAKOAA 5 January 2011 How about a quickie tonight!

Despite all the turmoil and distractions we still called the ISM service sector index today almost spot on. We called a 57 when the in the know were saying 56.  It came in today at 57.1, giving the market even more umph!  (Financial term meaning momentum.)  The ADP employment report blew away almost all expectations.  At a 297,000 number it was almost ripple what was expected.  There is a lot of skepticism attached to the number, but it should be a fair tell that Friday’s report will be positive.  So when it was all said, we made some money today.  Hope you did too.

We bought some May 12.50 Puts on TKLC Tekelec engages in the design, development, manufacture, marketing, sale, and support of telecommunications products and services. We had heard some negative forward looking comments about the company and feel we might be able to score 15-20 % in a couple of weeks on these puts.  DO YOUR HOMEWORK.

We also doubled down on out May 20.00 FINL Finish Line Calls.  We are down about 65% on them and feel there is a strong upside here in the next 8-12 weeks.  This gets us a big bag of the contracts.  I don’t recommend you do this light heartedly.  Perhaps it’s the mold fumes seeping out of my rotting wood?

In one of the other portfolios we help with, we did take a nice 75% profit on some March call options on BWEN.  It's fun making money for folk. 

Dracula Stock

Dracula walks into a delicatessen and says “I’d lige a tongue sandwich.”  The guy behind the counter says, “Would you like it to go?” Drac says, “Yes, I’d lige it to go ‘blahlahlahlahlah’” Ok its much funnier in person.

You might check out BLUD, Immucor, Inc., an in vitro diagnostics company, engages in the development, manufacture, and sale of reagents and automated systems.  Sexy Financials, they report tomorrow and we are eyeing a June 22.50 call at .85 cents.  Do your homework.

Pelosi and Gavel Envy

Today was a historic day as power changed in the House of Representatives.  Pelosi gave way to Boehner as the next speaker of the house.  We really should be proud to see a smooth transition of power.  Let us all hope they can get something done.  He does have a much bigger gavel than Nancy.