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After a weekend of analysis I posted here last night that I was going to take up positions in DuPont (DD), and Whirlpool (WHR). I also noted that I would be trading out of NLY and FXP. Well, the market helped in some regards, and hurt in others. While it was nice to be seemingly right in my research of both these names, I wish the market would have held off another day so I could get in at better prices.
If you noticed, the market was up big today, and DD and WHR were no exceptions, especially WHR which was up 7.24% vs. 1.52% for the S&P 500. As such, I didn't get into or out of any of the positions at the prices I wanted. I was able to trade out of FXP at $33.26, as well as NLY at $18.02.
With the proceeds, I purchased three (3) DD $45/$55 January 2012 CALL spreads for $3.65/each, or $1,095. I was also able to buy one (1) WHR $75/$85 January 2011 CALL spread for $4.65, or $465 total.
Due to the jump in DD options today, I was unable to buy the second WHR call spread. Therefore, I have ~$300 left in cash. I do not want to leave that money on the sidelines, so I am going to by seventy-five (75) shares of Citigroup at $3.98. As you recall, I owned this stock earlier in the year, and did quite well with it. I suspect that this name is going to make a huge move after the government sells all of it's shares. We'll see.
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