Long MSFT

Long MSFT at 25.06. Like the 2.7% dividend. In addition some big Wall Street banks don't believe in this anymore. Do believe this could be a better bet than US treasuries. Where's the 10 year treasury right now? 2.53%... I will probably start selling some calls at some point just to get some downside protection.

Add to Short ZUMZ

Sell Nov 25 call on ZUMZ at 1.85.

T o recap

Long DKS, Short ZUMZ

Sell 2 22.5 Put at 0.85, Sell 1 25 Call at 1.85

Reducing Short exposure on ZUMZ

Not done by direct buying or closing of position. Instead sell November 22.5 Put at 0.83

Popcorn or sine wave?

Argument can be made that when a pair reverts to mean it will eventually follow through to the other side leading to the other extreme. I've not been following that strategy though. The stock price moves resemble more of popcorn style moves.  Also if anyone has better ideas on a close out strategy would be greatly appreciated.  Couple of things happened in the last few days. One pair hit the 7-8% threshold (UMPQ/CBU), but we didn't close out at that time and now we are back to square one. The other pair overshot our estimate (MTN/MAR) and we ended up closing out too soon...

Long ADBE

Long ADBE at 27.84. Purely speculative. Rumors of MSFT take over.

In addition to the stock, bought 2 call at 31 with January 2011 expiration.

Expect a premium of at least 30-35% to the current price, given the way deals have gone through in this sector this year.

Short MAR

Sell Nov 37 Call at 0.85

Close Out (MTN/MAR)

MTN at 38.2,  MAR at 35.92

September Performance

The portfolio is up 1.3% for the month.Entire history since inception in table form is also here.

Month	Portfolio	S&P 500
Jul-09	1.7%	5.1%
Aug-09	4.0%	3.6%
Sep-09	4.7%	3.7%
Oct-09	7.0%	-1.9%
Nov-09	2.1%	6.0%
Dec-09	4.4%	1.9%
Jan-10	4.8%	-3.6%
Feb-10	-3.1%	3.1%
Mar-10	0.0%	6.0%
Apr-10	-1.0%	1.6%
May-10	-2.5%	-8.0%
Jun-10	3.9%	-5.2%
Jul-10	-0.3%	7.0%
Aug-10	1.3%	-4.5%
Sep-10	1.3%	8.9%

New Trade (Energy)

Long NAT at 26.76, Short ERF at 24.69

New Trade (Retail)

Long DKS at 28.12, Short ZUMZ at 21.33