Thursday, September 27, 2012

Thursday Evening

St John, Virgin Islands

I Don't C-Care ... not gonna do it.

IDCC Daily Chart (11:10AM)
It's a patent stock and it hurt me bad last year.  I just can't go back there but it does look like it could break higher.  It's already cleared the 200 now and the moving averages will soon be in a bullish configuration.  That's where the 20 is above the 50 which is above the 200.

It's a tight one

Gator's Chart of the Day: GWW

W.W. Grainger Inc has been consolidating for 6 weeks and the Bollinger bands are now only 3.2% of the 20 day simple moving average.  That's tight.  The volume for the last two days has been well above the moving average and increasing.  In addition the 50 day sma is going to intersect the 20 day today (Thursday) and checking the Volume at Price (not easily seen on this chart but trust me) there is no red in the top couple of bars on the daily chart.  Earnings should be around the middle of October.

The stock has 3.2% dividend yield so if you like you could buy and hold and sell upside calls.  You could collect about $300 for each contract (100 shares) you sold with a November 220 strike.  That's not bad.  If the stock hits 220 by then it could be called away from you for 6.3% gain on top of the 1.4% (300/20,700) you collect in premium.  Annualized that's about 45% return. If the dividend is paid in the mean time that's just gravy.  Not too shabby.