Cha-Ching! Best idea for '09 got better with profit enhancements.

Fellow Friends and Traders,

I'm including the 91-page court document: Huntsman’s Response to the Banks’ Motion for Summary Judgment on Causation and Damages.

http://www.scribd.com/doc/14833273/HUN-Response

I'm not a legal beaver by any means and it's almost impossible to read it without wanting to say Cha-Ching!!* a few times.  The document takes awhile to read but make the effort. Page 2 asks for damages in the area of $4B when the stock was at $12. Today, I believe it's closer to $5B or $20+ a share in cash with the stock now at $5.00. This situation has a quite nice ring to it!  Cha-Ching!!  Furthermore, if I were in CS/DB shoes I wouldn’t expect any kind of victory on Friday May 8th. Reading the filing, with my layman understanding, I believe the banks are dead. A Texas jury should eat them alive.

CS/DB are pulling out all the stops. You can't believe the crap they are slinging and with little or no case history to support it. I'm more than optimistic. I want to double the size of my position. Yet, in all that is Holy we can't – or getter said, we shouldn’t. We have to survive and keep trading even if HUN goes to zero although that possibility is remote, in my opinion.

That's where the calls come in.  NET Followers and Traders have loaded up with common and $2.50 calls.

New Strategy:  on any weakness buy the $5.00 or $7.50 calls post June expiration then on any rally sell the stock and your deep ITM calls. Specifically, buy two calls at higher strikes for every one ITM call or for every 100 shares. This gives the trader greater upside yet less risk and takes our cost or investment risk off the table.

I was looking for a $7-10 stock later this year and much higher next year on fundamentals. Today, the price looking into the teens, $12-$15, isn't so farfetched.  The key is leverage and to take $$$s off the table.  No Margin Please! Pigs do get slaughtered.

I've covered many stocks in my 48 years. This HUN investment has BLOW-OUT potential and we, as of today, still aren’t paying for the lottery ticket option. All chemical company stocks got destroyed to levels unheard of and are now just returning the extreme undervalued levels. HUN has only followed along with this pack. Starting next week we may see HUN begin to pull away in light of the expected court ruling due Friday May 8th. It's now down to a matter of days not months unlike when I first recommended HUN.

I must say I loathe George Soros as a political person but as an investor he's one of the best. I've read most of his earlier books. One thought comes through time and time again and it permeates my money management style. 

"Make big bets and make sure you're right."

My favorite energy play Linn goes ex-dividend Monday at $0.63. The stock closed $16.97. It looks like our May 17.50 strike should expire worthless. Not a bad few weeks work. I'm guess the June call will expire worthless as well.

We were very lucky with HTS before it went ex-dividend a few weeks ago as Deutche Bank recommended the stock. We had a great chance to sell calls that then expired worthless in April and now May. However, Friday Wachovia down-graded the stock to hold. Cie La Vie. Sell more puts, buy the stock lower and so on and so on. The beat continues.

Regarding the general market, I still believe we have limited upside with a larger downside. Looking ahead the economy will have to show growth.  It will no longer rally on "it is not getting worse."  NET Traders should continue to trade both sides.