Over the past few days we made several routine adjustments to our remaining LT Long Positions that we decided to holdover through 2009, and in some cases through 2010.

We will publish those over the weekend and update all of the Trade Grids with all of the current positions.

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RMBS

Primarily we have been concentrating on RMBS, which currently is the only real trading opportunity out there while this downturn continues.

We SOLD all of our ITM ST Hedges on RMBS for profits or BE, save the Spec Call Trades that we purchased on a possible decision by Judge Whyte after Wednesday’s Hearing.  All in all we did very well with the Spec Bear Attack Trades and subsequent hegdes to the upside.

The 7.50/9 Call Spreads we entered yesterday @ $.75 as RMBS made it’s midday reversal were SOLD today for near full value @ $1.45+

We believe it is again another excellent opportunity to make LT Add-Ons or New Entries into RMBS at these levels because Judge Whyte certainly seemed to tip his hand about the upcoming cases and that the Delaware Ruling would have minimal effect on everyone, save perhaps Micron… who is probably going out of business anyway.

From the eyewitness reports, he appeared to be surprised by the ruling but acknowledged that it did have an impact on at least Micron, and scheduled briefs for the end of this month.  He also appeared to make clear that Micron or no Micron, the remaining trials would move forward beginning in Mid-February.  This is very good news indeed.  He delayed for just one week to be briefed on the MM’s arguments about the Delaware decision but seemed to indicate he was moving forward regardless.

Many took that to mean, settle this thing or suffer the consequences.  He appears to want to complete ALL of the trials before him and then send all of the decisions to the CAFC (FED Appeals Court) to be considered together, rather than piecemeal as the Manufacturers would prefer, allowing them to continue their delay tactics for as long as possible.

It doesn’t sound like he’s buying into that delay crap anymore.  More than ever, it appears that all roads lead to RMBS.

Coach BD

 

 

01/16/2009 at 7:11 pm
Posted in: Alerts & News, RMBS. You can leave a response, or trackback from your own site.