On Friday I sold my Sandridge call options, which have appreciated nicely since I purchased them a little over 5 months ago (here's my original post: http://mevsemt.blogspot.com/2010/08/fool-me-once.html ). Specifically, I bought 50 contracts for $1.07 (or a total cash outlay of $5,387) and sold them at $3.65 (for proceeds of $18,211), netting me a profit of just under $13K.
Interestingly enough, while my gut tells me Sandridge OPTIONS aren't a good risk/reward bet after their recent appreciation, I still think Sandridge STOCK is undervalued and could have a much better risk/reward profile. Earlier this year I also sold HAWK, so my portfolio is about 40% (or $54K) in cash. This being the case, I'm considering buying SD common stock, especially if it pulls back. Other stocks on my watch list include CSCO, NRG LEAPS, JOE, BAC, and ESI... stay tuned.
Questions? Comments? Email me at mevsemt@gmail.com
