Careful does it! And a Port24 update

I am hearing from all the various economists, bloggers, and folks I respect (market-wise) that we are due for a correction. I asked a month or so ago if you had your chair ready for when the music stops. I think you need to ask yourself that question again.


I put on one of my volatility plays last week: took TZA (bearish x3 small cap ETF, was at $15.04 at the time) and bought an equal number of Apr11 $15 puts and calls. I don't care what direction we go, as long as we move at least 4% in either direction in the base (~11-12% in the x3).
Though honestly, if we move up (down in the ETF, since this is bearish) I will probably sell the puts if they near a double. I'd hold on to the calls, as they will go up if we do get the correction I fear.

In the Port 24, I bought 2,600 Celldex (CLDX) this morning at $3.88 and sold the May $4 calls for $0.55 against the whole position. CLDX could well continue falling here, but May gives me a while to be right.

With this morning's prices, I'm currently at a 14.2 annualized return and still have $14,160 in cash to initiate another position.

In real money accounts, I'm very interested in PZG, DCTH and NBIX here.

Regards,
Trond