FinancialNirvana.com

After looking at the markets this morning I have to quote George Costanza from Seinfeld:  (Episode 123 - It’s the one where George wants to name his kid Seven)

Awright, let’s just stay calm here! Don’t get all crazy on me!

For a while now I have gone completely to trading Options.  If I am long a stock I will buy the Calls that expire well in the future (December or beyond if I am buying right now).  If I am short a stock even then I will buy PUTS that expire well in the future, just in case.  Occasionally, I will buy short term PUTS.  At worst, buy some cheap PUTS (low Delta) to protect your long positions. 

At the time when I am down on all my long positions, the shorts have come in and saved the day.  Anyway’s, in these tough times I have been able to grow my portfolio by shorting the following stocks in the last few weeks: 

• First Solar (FSLR) (Finally, I was burned until now but I stayed with it)
• Sunpower (SPWR)
• Jarden (JAH) (Thanks Amit Chokshi)
• Amazon (AMZN)
• Nokia (NOK)
• SiRF (To protect my long position)
• Jones Soda (JSDA) (To protect my long position)

I still own PUTS on First Solar (sold some of my PUTS) but sold PUTS on Sunpower, Amazon and Nokia a little early.  

My longs positions are all suffering right now but my shorts protected me from this disaster.  I wished I would have shorted more Alternative Energy stocks since I wrote this article on August 8.  There are quality alternative energy companies out there once the dust settles but I’ll leave that for another article. 

* Full Disclosure: I am Short First Solar and Long SiRF and Jones Soda