Pulling in the Global Bull’s Horns… And Taking Profits on Atwood Oceanics (ATW) Options

Nicholas Vardy

Nicholas Vardy has a unique background that has proven his knack for making money in different markets around the world.

Negative headlines notwithstanding, you should be pleased about the performance of your Global Bull Market Alert portfolio. Six of your nine positions are profitable, and you’ve had some big 30%+ gains in Sociedad Quimica y Minera de Chile S.A. (SQM) and Potash (POT)

Here’s why. My strategy has been to focus your positions in the portfolio on a diverse range of countries, sectors and asset classes that have a high degree of relative strength. That doesn’t mean that every pick can fight the tide of the market. But it does mean that even if markets tumble, these picks tend to tumble less. For example, both the Market Vectors Russia ETF (RSX) and the Market Vectors Coal ETF (KOL) held up strongly in the face of falling markets. They dropped only about 1% last week, and by Friday were trading off of their lows. As a former manager of a global mutual fund, I can tell you that this portfolio has outperformed the market in ways that are impossible for a mutual fund to do. I doubt there is a mutual fund on the planet that has holdings as diverse as Potash (POT), the Market Vectors Russia ETF (RSX) and the Market Vectors Coal ETF (KOL) in a single portfolio.

A good example of high relative strength is oil driller Atwood Oceanics (ATW). The stock jumped from $105.42 to a record $120.04 on Friday after a Credit Suisse analyst upgraded the stock, noting that “Atwood’s growth rate will be the highest in the industry for the offshore drillers.” The stock is now up 7.14% and the options are up 28.41%. Because the options spent the bulk of the last two months under water, I’m going to recommend that you sell all of your options here to lock in your gains. If the stock’s momentum proves sustainable, we can always get back into the options at a later date. We’ve pursued this strategy profitably both with Potash (POT) and with NII Holdings (NIHD), where you’ve locked in triple-digit percentage gains during the past two months.

Exclusive  A Retail Rout and Recession

P.S. I invite you to join me at the 30th anniversary celebration at The Money Show San Francisco, August 7-10, 2008. Hear from 50+ world-class experts in more than 150 FREE workshops at the San Francisco Marriott, where you will be given every opportunity to refresh your perspective and prepare yourself for the uncertainty that may lie ahead. Meet face-to-face with 150+ investment companies and evaluate the products and software designed to help you improve your market performance. Call 800/970-4355 and mention priority code #009613 or visit  The Money Show San Francisco’s Web site to register FREE today!

share on:

Like This Article?
Now Get Our FREE Special Report:
Alternative Investing: Investing in Timber

Stock Investor editor Paul Dykewicz reveals why investing in timber may be one of the best long-term portfolio strategies you'll find today.

Get Access to the Report, 100% FREE

share on:


Dr. Mark Skousen

Named one of the "Top 20 Living Economists," Dr. Skousen is a professional economist, investment expert, university professor, and author of more than 25 books.

Product Details

  • Forecasts & Strategies
  • Home Run Trader
  • Fast Money Alert
  • Five Star Trader
  • TNT Trader

Bryan Perry

A former Wall Street financial advisor with three decades' experience, Bryan Perry focuses his efforts on high-yield income investing and quick-hitting options plays.

Product Details

  • Cash Machine
  • Premium Income (exclusively for subscribers of Cash Machine)
  • Quick Income Trader
  • Breakout Options Alert
  • Hi-Tech Trader

Jim Woods

Jim Woods has over 20 years of experience in the markets from working as a stockbroker,
financial journalist, and money manager. As well as a book author and regular contributor to
numerous investment websites, Jim is the editor of:

Product Details

  • Successful Investing
  • High Velocity Options
  • Intelligence Report
  • Bullseye Stock Trader
  • Eagle Eye Opener

Bob Carlson

Bob Carlson provides independent, objective research covering all the financial issues of retirement and retirement planning. In addition, Bob serves as Chairman of the Board of Trustees of the Fairfax County (VA) Employees’ Retirement System, which has over $2.8 billion in assets.

Product Details

  • Retirement Watch
  • Retirement Watch Spotlight Series
  • Lifetime Retirement Protection Program

Jon Johnson

Jon Johnson's philosophy in investing and trading is to take what the market gives you regardless if that is to the upside or downside. For the past 21 years, Jon has helped thousands of clients gain success in the financial markets through his newsletters and education services:

Product Details

  • Investment House Daily
  • Stock of the Week
  • Technical Traders Alert
  • Rapid Profits Stock Trader


Used by financial advisors and individual investors all over the world, DividendInvestor.com is the premier provider and one-stop shop for dividend information and research.

Product Details

Popular tools include our proprietary Dividend Calendar, Dividend Calculator, Dividend Score Card, and many more.

  • Dividend Investor