Derek Webb, CFA

Markets: This feels a lot like last year: sell in May and go away. Last year it was risk on /risk off trades. This year it will be a repeat of last year: same sectors. This is a stock pickers market. He doesn’t like writing options this year because the volatility is quite low.

Long options: You can lose 100% of your money if you do this so use a very small portion of your money. B of A has issued a lot of stock at the bottom so it has a long way to go. There is easier money to be made.

Not crazy about it right now because China is slowing down. You need to be careful. Last year the seasonality trade would have lost you money. There are a lot easier places to go than the commodities.

A cash covered put and a call are the same trade. He likes to, if he doesn’t own it, use a cash covered put. This is one he likes. Gold stocks have been pretty well beaten up. The stock is down and on trend line. Great idea tow rite a one-month put at 3.5% premium.

Potash prices have been coming down because of foreign buyers reducing demand. Forget seasonality. There is momentum in the fertilizer industry in Canada. Not POT.

Best momentum of all the Ag. stocks out there. Stick with it. You are in the right name. Chances are it will bounce off its high. This stock wants to go higher.

Options are taxed as capital gains. The premiums are a capital gain if you trade it are still capital gains.

Not crazy about steel socks because if China is slowing they will not do very well. It is forming a base, however. The market has confirmed it wants to take it higher, but he would be cautious.

Has been the Mo-Mo stock that won’t stop. There is a lot of money that keeps piling into it. It is over bought right now. Nothing wrong with selling it right now.

Short term doesn’t have an opinion, long-term fine. Doesn’t follow it.

(Top Pick Dec 1/11, Up 15.94%)

(Top Pick Dec 1/11, Up 4.90%) Was intended as a short term trade.

(Top Pick Dec 1/11, Up 8.20%) Was intended as a short term trade.

There is a possibility of last summer repeating this summer. Up 200%. Volatility is at a low. Great hedge to the entire performance. Very short trade. Put 5% in this only. Very short play. Cost of owning it is very, very high

Buy them when they are down. A great place to enter. Could use a PUT to enter.