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Todd Harrison: Positioning Into Year-End

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The good, the bad, and the controversial!

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MINYANVILLE ORIGINAL

Editor's Note: Todd posts his vibes in real time each day on our Buzz & Banter.

I juggle cats for a living; today I'm adding chainsaws and bowling balls to the mix as we're T-1 until Festivus!

We still have some room--not much, but some--so if you wanna celebrate the journey, help some kids, and network with the finest human capital in the financial universe, please visit www.rpfoundation.org to lock your spot.

Tape-wise? Oh yeah, that! I rounded up on my S&P February out-of-the-money puts this morning, with the final addition precisely where I bought--and sold--them earlier this week (my average cost is about a nickel higher).

I'm not sure if this is a speculative bet or a hedge; prolly a little bit of both. While I've taken the lion's share of my trading capital off the table into year-end (literally), I left some house money to see if I can turn it into money that will help pay for a house.

My longs? Cannabis plays, which I can't mention by name because 1) they're too thin and 2) they're literally lottery tickets as Altria (NYSE:MO) or Archer Daniels (NYSE:ADM) will likely bogart the space by the time the smoke clears rises.

The net sum of those common stock positions is greater than the February downside premium I own so I'm technically long delta with positive gamma, but in reality, I own a thesis against the tape. In other words, I'm long weed and short speed for reasons already mentioned (higher tax revenue, more jobs, less crime, and no coverage (yet) on Wall Street).

In terms of trading tells, Apple (NASDAQ:AAPL) is an obvious focus ($500-recent lows-is the level that must hold, if and when) although the tape did a nifty job of proving Newton wrong yesterday. Breadth is 3:2 negative (not yet a tell) and the banks--which held the market up yesterday--are mixed. BKX 47 is the level of lore in that arena.

What else? If you missed yesterday's conversation with Jeff Saut, you should give it a read; he's as good as it gets and he speaks to specific stocks he likes--American Tower (NYSE:AMT), SBA Communications (NASDAQ:SBAC), DaVita (NYSE:DVA), and DexCom (NASDAQ:DXCM)--and sectors he's avoiding (consumer non-durables).

And yes, he'll be at Festivus, along with other "fan favorites" such as Peter Prudden, Michael Gayed, Barry Ritholtz, Peter Atwater, Mark Dow, Aaron Brown, Stephanie Pomboy, Ivan Zinn, Scott Redler, and Lloyd Khaner. Not that I'm a namedropper...

A'ight, lemme get this to you as I've got an Abyssinian spinning through the air.

Hey Crash, watch that chainsaw!

R.P.

Twitter: @todd_harrison

Follow Todd and over 30 professional traders as they share their ideas in real-time with a FREE 14 day trial to Buzz & Banter.
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Positions in SPX and cannabis stocks. Jeff Saut may have positions in stocks mentioned.

Todd Harrison is the founder and Chief Executive Officer of Minyanville. Prior to his current role, Mr. Harrison was President and head trader at a $400 million dollar New York-based hedge fund. Todd welcomes your comments and/or feedback at todd@minyanville.com.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.

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