My trading style is to spread out my risk by taking numerous positions in diverse industries. Rarely do I take $100k plus positions. I currently hold one position of that size ERF at $111600. I have suggested that security to others and I eat my own cooking. With this post I will take a position larger than that for the first time ever. At $126000 my just executed trade in a put option in Lorrilard, LO, will move my risk quotient up a good bit. I have never lost money in this security and expect the continued high level of option prices and volatile stock price will continue until President Obama and his FDA finally make a definitive statement on the banning of menthol in cigarettes. As I have noted before I can not see this happening as the banning of this ingredient in cigarettes will immediately create a black market in the smokes. The worry is the zealots on the FDA board will go ahead and do it anyway. I also can not see Obama allowing this ban due the fat the predominance of menthol smokers are black, not a wise election season decision there.
So with all this uncertainty an opportunity lies and I am stepping in and taking advantage by upping my bet considerably higher.
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