Dr. Paul Price is managing the Virtual Value Portfolio and the Virtual Put Selling Portfolio. He specializes in value investing, augmented with the sale of equity options.

Paul has been a featured speaker at the Options and Forex Expo in Las Vegas and the International Traders’ Expo in New York City. He is a featured columnist every business day on The Street’s Real Money Pro web site.

For more about Paul, please read here.

Shorted Some HSII Puts Today

HSII Jan. 2015  $17.50 put

Shorted Some HSII Puts Today

By Dr. Paul Price of Market Shadows

We sold six contracts of Heidrick & Struggles (HSII) Jan. $17.50 puts at a price of $1.60 per share in our Virtual Put Writing Portfolio. 

Our commitment is to be ready to purchase 600 HSII shares [Continue Reading]

We Are So Not Prepared For Another Oil Shock

Screen Shot 2014-06-15 at 1.49.30 PM

John Rubino writes a must-read article regarding the Middle East, the oil market and the stock market. What kind of a mess are we facing and how did we get here?

We Are So Not Prepared For Another Oil Shock

Courtesy of John Rubino.

In one sense, energy doesn’t matter [Continue Reading]

Insider Trading: Turned Bearish. We’re still finding opportunities.

Insider Sell-Buy as of Jun. 14, 2014

Company officers are a bit more cautious than a month ago.

By Dr. Paul Price of Market Shadows

That doesn’t mean there is nothing to trade.

Company officers and directors play with real money. They only get to keep winnings on shares they hold for more than six months (shorter-term profits must be disgourged). [Continue Reading]

Friday the 13th – Not Unlucky At All

VVP as of Jun. 13, 2014

By Dr. Paul Price of Market Shadows

The Market Shadows Virtual Value Portfolio eked out a tiny gain for the week as our two emerging markets positions (EMF & VWO) plus buyout talk on International Game Technology (IGT) gave us a late boost.

Our value blend is now up just over 8% year [Continue Reading]

A Fashionable Put Writing Play

ROST  Quote with 28-month chart and Put break-even

Ross Stores – High Quality at a Discount Price

By Dr. Paul Price of Market Shadows

Ross Stores (ROST) has posted outstanding long-term numbers. The company’s balance sheet is as beautiful as their designer clothing.

Despite excellent fundamentals, shares that were trading as high as $82 last November were down to $66.69 this morning. ROST typically [Continue Reading]

Locked in Two Gains, Shorted LULU Puts

Closed 2 Big Winners - 7 Months Early

Two Early Close-Outs & One New Put Sale

By Dr. Paul Price of Market Shadows

Our Virtual Put Writing Portfolio made a few moves this morning.  We bought to close our single contracts of the Jan. 2015, Walgreen’s (WAG) $45 and our ExxonMobil (XOM) Jan. 2015, $85 put. We are still short one contract of [Continue Reading]

Beauty is in the Eye of the Option Seller

ULTA  2007 - 2014

To get Market Shadows’ action alerts in a more timely manner, sign up on the top left of Market Shadows’ webpage. 

By Dr. Paul Price of Market Shadows

ULTA was down to a relatively cheap valuation ahead of its earnings report.

ULTA Salon, Cosmetics and Fragrances (ULTA) has [Continue Reading]

Booked a ‘Beery Good’ Gain on Molson Coors

TAP  close out Jan. 2015 Put

Closing the TAP early for a Heady Profit

By Dr. Paul Price of Market Shadows

Market Shadows Virtual Put Writing Portfolio closed out our Molson Coors (TAP) Jan. 2015, $55 strike price put today at $0.75 per share. We were able to do this more than seven months early while capturing 92% [Continue Reading]

Investors Should Hear the Truth

Smells Like Bullshit

I’m Calling ‘Bullshit’ on Mark Hulbert

When a headline is immediately contradicted by an article’s own author, something is wrong. Seeing it come from a respected source makes it even worse.

Mark Hulbert’s June 7, 2014, column perpetuates the myth of risk-adjusted returns. That absurd theory says that lower portfolio volatility somehow makes up for [Continue Reading]

To Win, You’ve Got to Play

VVP  WE Jun. 6, 2014

To Win, You’ve Got to Play

By Dr. Paul Price of Market Shadows

Science Fiction author Robert Heinlein said it best.

Many traders have missed the rally, worried that the new highs are unsustainable. But we don’t need to predict out years from now to be good investors; we are better [Continue Reading]

The Gift of Fitness

LTM quote with Nov. $45 put

The Gift of Fitness

An Unexpected Plunge Provided Opportunity

By Dr. Paul Price of Market Shadows

One of old favorites, LifeTime Fitness (LTM) hit a new yearly high recently at $56.94 after an activist hedge fund announced a big stake and started pushing for a REIT conversion.

Today, a minor brokerage firm downgraded LTM [Continue Reading]

Panera Bread – Back to a Savory Level

PNRA put sales for MS

Cooked Up some New Put Sales Today

By Dr. Paul Price of Market Shadows

Panera Bread (PNRA) is similar to Costco (COST). Both companies are much loved by investors and rarely sell at cheap multiples. Each has an enviable long-term growth record.

Temporary share price weakness is the best time to sell [Continue Reading]

Why is a raven like a writing desk?

379px-MadlHatterByTenniel.svg

Why is a raven like a writing desk?

By Ilene

In her new book, The Mad Hatter: The Role of Mercury in the Life of Lewis Carroll, my friend Mary Hammond explores Lewis Carroll and the origin of his Alice in Wonderland character, the Hatter.

The secret of using mercury in felt [Continue Reading]

Bottoms Up or Top Down

Insider Sell-Buy   as of May 30, 2014

Bottoms Up or Top Down

Insider Action: Still Positive Despite New Highs

By Dr. Paul Price of Market Shadows

I put more faith in actual transactions with money on the line than sentiment surveys where people can say one thing while doing something else. The Thomson Reuters Insider Sell-Buy ratio has proven to be [Continue Reading]

Sell in May, Keep Profits Away

YTD returns as of May 30, 2104

Sell in May, Keep Profits Away

By Dr. Paul Price of Market Shadows

Cliches are fine to listen to but often become expensive when followed blindly.  All the major indices rallied in May and finished the month positive year to date. The DJIA is now the laggard, up just 0.85% since Dec. 31, [Continue Reading]

Closing June Option Early, Adding New Name

EZPW  put close out

One In, One Closed-Out 

By Dr. Paul Price of Market Shadows

We made some trades in Market Shadows’s Virtual Put Writing Portfolio today.

We closed out our 5 contracts of EZCORP June 21, 2014, $12.50 puts @ 55-cents per share. These had been sold last Dec. 3 for $1.95 per share when EZPW was trading [Continue Reading]

Pam Martens on Hot Topic ‘Inclusive Capitalism’ Meet-Up

Lady-de-Rothschild-on-Bloomberg-News

For ongoing commentary about the worst of Wall Street’s behavior (is there any other?), visit Pam Martens at Wall Street on Parade. Ms. Martens is very familiar with the Wall Street culture having spent 21 years on the Street observing it. She is now an outspoken critic of Wall Street’s corrupt practices and its [Continue Reading]

Success, Redux?

KELYA  put with chart

By Dr. Paul Price of Market Shadows

In Market Shadows’ Virtual Value Portfolio, we booked a 92.7% profit when we sold Kelly Services Class A (KELYA) last Dec. 23, 2014, for $25.30 per share.

While not 100% perfect, our timing was very good. Today, with Kelly Services back down to $18. This time, [Continue Reading]

If the Shoe Fits… Sell Puts

DSW  Sep. 30, 2011 - May 28, 2014

Market Shadows’ Virtual Put Writing Portfolio is back in action.

By Dr. Paul Price

We took advantage of a clearance sale in DSW (Designer Shoe Warehouse) shares after a weaker than expected, but decent, fiscal Q1 profit.

We sold (wrote) 6 contracts of the January 2015, $25.00 puts for $3.40 per share in our [Continue Reading]

Our Stocks Survived Without Me

VVP as of May 27, 2014

By Paul Price of Market Shadows

I just returned from a trip through Seattle, Washington and Tokyo, Japan.

Stocks in the Market Shadows’ Virtual Value Portfolio chugged along during my absence. We made no changes in our Virtual Put Selling Portfolio.

As of Tuesday’s close the original $100,000 stake in our Market [Continue Reading]