I rarely agree with your trade tactics Aerosmith; but today...you actually made sense. Mind you I dont think existing common shareholders are getting the 1% that your claiming.Aerosmith wrote:I thought I will stick around till at least 3rd June when I return to the US side and advise fellow somnet on prospective investments. My take is for all those looking for at least second Q2 profit is to buy OIL Long ETF/ETN. To be specific Double long ETN DXO...Oil is trading at $63.77 and with OPEC promising to raise it up to $75 one can have a good run. For hedging purpose one can use exploration firms. In addition if oil does sustain this momentum buy puts for transporters, rails, airlines.
For immediate trade till Friday GM is the way to go. Mind you GM will still not buckle and trade within range of 1.2-1.4 for some sentimental purposes and some common holders hoping Uncle Sam will come to the rescue. I tried to paper trade GM now and the $1.00 puts are trading at $0.53, which represents almost the 100% gain of shorting the stock to zero in a bankruptcy scenario. Many people will not go for this as they fear existing common shareholders are getting 1% of the new equity which translates into a current stock price somewhere in the 15-20 cent range. This I guarantee you folks will never happen and can only happen on an out of court settlement a scenario bond holders will refuse. The FED will not allow GM to ram through a 363 sale like they did with Chrysler.
Good luck all
Im leaning toward emerging markets heavily these days tho.
