Bouncing ideas with the aunt

My aunt wanted to bounce her ideas on a few companies. It's more interesting to listen how she explains her reasoning because her memory is beyond intuitive. She relies on experience and her ability to accurately remember historical events . Without delay, this was on her mind.

1) Still long MYY.

2) ETFC. She thinks it drops to 18.

3) SCHW. She's been long since last summer and I said to sell because of GS's reaction to its own earning's report this morning. We were trying to pick a bottom, she went with 15, I went with 14.30 which is near the July 2006 bottom.

4) Short HD. She shorted just above 39. She will cover some at 35.

Now for the few who wonder what I'm watching:

5) Long SKF. Most of the traders know my dislike of BAC and MER. Since this was one of the best performing ETF's in yesterday's market, I am looking to add to this position on any pullback.

6) Long TWM. Before today, I was underwater on this position before today's gap move. I'm more likely to close this position sooner than later, and more comfortable following the daily news that influences my other ETF position.

Some have asked why I haven't long put options on individual stocks such as BAC and MER? The main reason is because being right is different from being profitable. There's always a chance that an individual stock will not move far enough to overcome both the strike price and the premium you paid for the out of the money or in the money option before the options expire. If you are going to risk your money on any position, the potential reward must justify you're willingness to take the trade. Remember, there is nothing wrong with collecting 5.25% in interest for a cash position while waiting for a good trade. Every bad trade you eliminate improves your overall portfolio return.