Casino Stocks Give Ground Grudgingly

As mentioned in an earlier post, we sold our puts on MGM at a very small loss. Today we decided that there is not going to be a really big correction in these stocks in the near future and bought some shares of MGM and Las Vegas Sands (LVS), both of which have come down only slightly from their recent highs.

WYNN is also a stock we are considering, but it is a much more expensive stock and might not provide enough of a percentage return (compared to LVS and MGM) to make tying our capital up in WYNN shares a good idea.

We also bought a small position in MEMC Electrical Materials (WFR) today. It is trading at its 50 day moving average and has been trading in a tight range since November of last year. If the stock breaks out to the upside (above $20) we will continue to hold it. If it rises to the top of its range, but does not break out, we will write some calls against it.