Yesterday I sold 10 Sears Jan 2013 $95 call options at $1.25 per contract. If you've been following the stock, you know it's taken off in 2012. In fact, between my call options and common stock, Sears was roughly 12% of my total portfolio coming into the year. Before yesterday's transaction, it had gone up to 22%. So do I think Sears is overvalued? No, not by a long shot. However, since it had become the single largest position in my portfolio, I figured the best thing was to be prudent and trim it back a little.
Questions? Comments? Email mevsemt@gmail.com.
