As we said in a posting earlier this week we eat our own cooking. Therefore today we took a 7200 share position on WIN $10 options for August. This is in addition to our already 4400 share long position. As they said in the movie Casino Royale we are "all in" on this stock which will report earnings next Thursday before the market opens.
The reasoning is clear we believe that WIN will report good earnings next week like FTR did this week as both are in the same business. Let's add in that there have been huge buys from insiders the past quarter at prices of $9.50 plus. We make the connection that high insider buying at a price near the current level means these people who should know are placing bets on the earnings of the company. One other note WIN will go ex-dividend in late September at 25 cents per share and that will buoy the stock as well in this trade. With the stock trading today just under $10 per share on a market pullback we decided now was the time to move and now only need just a 5 cent or so move above $10 strike price to make serious cash flow. Of course if the stock reports weak earnings we could see the opposite. But all signs point to a nice upward surprise.
So if you are looking for a good risk which is noted with the points above dive in and take a position. We hope that we have not starting feeling bullet proof after our big win on FTR this week.
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