The problem is the outlook was flat yet they have all ramped up. I decided to short klac of course, the only one that didn't go down today. Figures ! Klic has taken another 2 day beating, can't handle prosperity. Looking at 5 day chart , it looks like its just filling all the gaps, if it can hold here
nothing out of the ordinary with KLIC's pullback so far.
I am looking at picking up more of the Jan 10 calls between .65-.85 if we manage to pull back to low $9's. Otherwise I will just sit on my hands until we are over $11.00 and then start overwriting my 10's with 12's-15's as the price moves higher into year end.
Those targets may well be possible. ASE today reported in Digitmes that Q4 revenues would would be down. However, they also stated that ASPs and margins would be maintained due to strength of copper wire bonding.
Q4 weakness is no surprise and the Thailand floods may well exacerbate this. But the fact that copper is doing so well in this environment tells me that in the liklihood that capex has fallen, copper wire bonders should either be resilient or at least recover in short order.
If it gets to the low 9's, I'll buyback some trading shares I let go a few days ago.
I may be selling you some of those calls next bounce...
But mostly I'll just be holding common.
I had 2 accounts with just a little KLIC in them - 500 shares each. The NOV 11's worked well (wrote thurs at .40 bought back today at .15), the other account I wrote the 10's in may get called away - but I won't be upset it will still have been a rather profitable trade in a short timeframe.
Still thinking of that call buy then write on the speculative stock. Actually thinking it over now.