Debate Settled

Hi Shoppers,

 

Hi Shoppers,

 

I just want to say thank you to my readers who set me straight on the asphalt vs. concrete highways debate.

 

Apparently, I was comparing apples to oranges when I weighed Illinois roads and Texas roads in a recent Profit in Pumps.

 

Which makes sense as we have much harsher winters here in Illinois.

 

I was also told asphalt has better traction in ice and snow than concrete.

 

But then again, they call me “Queen of the Candlesticks, not “Queen of Road Construction.”

 

According to California-based Perrin Construction and Engineering, here are the pros and cons of concrete and asphalt:

 

Concrete Pros: 

      • Longevity, lasting 20-40 years
      • Recyclable, can be crushed into gravel
      • Holds up better under weight and pressure
      • More resistant to freeze-thaw cycle
      • Produced from limestone which is widely available
      • Environmentally greener, cleaner to produce
      • Cars run more efficiently on concrete

 

Concrete Cons:

      • More difficult to repair, needs to be replaced by slabs
      • Texture is added to the surface which creates a bumpy and noise ride
      • Installation and repair is more expensive than asphalt
      • Doesn’t absorb spills and vehicle chemicals
      • Prone to slippage during rain and snow

 

Asphalt Pros:

      • Cheaper than concrete
      • Recyclable, can be melted down and used again
      • Smoother quieter ride
      • Has better traction and skid resistant
      • Black color provides natural heat to evaporate moisture and clears the road
      • Easier to patch repair

Asphalt Cons

      • Melting it causes greenhouse gases and pollution
      • Only 10 year life span

 

So there you have it, folks. I know you were all just as curious as I was. Now we can sleep much better tonight.

 

Do I owe the government an apology? I don’t think so.

 

Now onto my trade idea …

 

Micro Machines

 

Check out the stock chart in Advanced Micro Devices (TIcker: AMD):

 

 

Remember, the hanging man is found at the top of an uptrend and could be the signal that it is about to reverse.

 

AMD is up from $99.82 on Oct. 4 to closing on Friday at $112.12.

 

That’s up 12% in nine trading days.

 

I think AMD is ready for a pullback this week.

 

Looking at the options, I like the Oct. 22 expiration date, as I think it will move within the next five days:

 

 

If AMD opens and trades lower today, I will be buying the Oct. 22 212-strike puts with an implied volatility of $29.16 and selling the Oct. 22 107-strike puts with implied volatility of $32.66.

 

I would pay up to $1.40 for this 10-point spread with a week to go.

 

I will begin profit taking over $2.50 and cut my losses if the spread trades down below $1.

 

Trade Review

 

In Norwegian Cruise Lines (Ticker:  NCLH), I waited until Friday to purchase the Oct. 22 27-calls. The stock didn’t break out above $27 until Friday. I paid $.75. The stock has since traded lower, so I will keep my eye on these and bail if they trade below $.50. I will sell these at $1.50.

 

Thanks for Reading … See You Next Tuesday!

 

Licia Leslie

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