For those of you keeping track, you know I've recently been buying a lot of SHLD LEAPS. Then, much to my surprise and delight, SHLD went on a tear starting in late August. Today it went up over 12%... on no news whatsoever!
Now I know SHLD is ripe for a short squeeze, and it seems like we're in the middle of one right now (~90 MM shares are held by long-term owners and index funds, ~16 MM are shorted, and there are only ~106 MM shares outstanding, hmmm...). However, the truth is I have no idea how to trade around this type of thing, and with the run-up SHLD has become a significant % of my portfolio. So today I let prudence take over, and sold both my SHLD Jan 2015 $72.50 and $85.00 LEAPS, for proceeds of $3,438 and $4,681, respectively.
Now it's not like I'm bailing on SHLD, after all I still hold the common, as well as the Jan 2015 $60.00 and $62.50 LEAPS. Rather, today's transactions were more about managing my portfolio's composition, keeping an eye on risk, and holding my temperament in check.
Questions? Comments? Email mevsemt@gmail.com.
