Ambac strikes again

My largest holding has outdone itself once again. That's right - ABK is up 25% on news that regulators approved Connie Lee.

As my stocks have bounced, I have continued to sell calls on my holdings. I sold Oct 08 calls (strike - 5) on WM for $0.45. I was also lucky to sell Sept 08 calls (strike - 12.5) on ABK for $0.25. Whenever a stock rises very quickly in a very short amount of time, volatility goes a little crazy. This is a good time to sell options. I remain bullish on all of my holdings (obviously) which is why these calls are out of the money. Some I am more bullish on than others.

I also had a good day trade on LUV today; shorted it at 15.93 and bought back at 15.65. It seems like there is strong selling interest (or weak buying interest) at and above 16. This is the second time that I have done this trade.

I believe that China is particularly oversold. I'm not sure why; I am going to overnight FMCN today if I can get it at a good price. (Update - I got in at 28.9).