Doug Kass shares his views every day on RealMoneyPro. Click here for a real-time look at his insights and musings.

 

My Latest Moves

Originally published at 8:43 a.m. EST on February 12, 2016
 
 

I'm making an important portfolio change this morning, buying a delta-equivalent of call positions against my life-insurance and auto shorts to neutralize the balance of those holdings.

I put General Motors  (GM - Get Report) on my "Best Short Ideas" list on Dec. 2 at $36.15, and the shares closed yesterday at $26.90 for a +26% gain on my short.

Likewise, I added Lincoln National  (LNC - Get Report) and MetLife  (MET - Get Report) on my "Best Short Ideas" list on Oct. 28 at $52.90 and $50.80, respectively. Those shares are now down dramatically, so my short positions are showing gains of +42% and +31%.

I'm keeping all three stocks on my "Best Short Ideas" list, as I continue to believe in "Peak Autos" and a "lower-for-longer" rate backdrop that will challenge life insurers' reinvestment opportunities for some time to come.

But I expect the stocks to rally over the near term, so I plan to buy calls on them this morning. If I'm correct, I plan to sell these calls later for a profit while retaining and moving back into naked-short positions on these three stocks down the road.

Position: Short LNC, MET, GM (small)
 

9 Rising Stocks in a Falling Market

Originally published at 2:02 p.m. on February 11, 2016
 

Stocks are near the day's lows as I write this -- and an old traders' adage is to "buy what's green in a flow of red."

That's not a strategy I plan to employ today. But for contrarians who are looking for some trades in a potential market turnaround, here are some stocks that were up on the day at last check at a time when the S&P 500 was about 30 handles lower:

  • Potash Corp.  (POT) , +1.77%

And in my biotech basket:

  • Sage Therapeutics  (SAGE) , +3.96%
  • Aerie Pharmaceuticals  (AERI) , +0.56%
Position: Long POT, RDN, AERI (small), NKTR (small), OTIC (small), SAGE (small); Short DIS (small), TSLA (small)

 

At the time of publication, Kass and/or his funds were short LNC, MET, GM, DIS and TSLA and long POT, RDN, AERI, NKTR, OTIC, SAGE although holdings can change at any time.

Doug Kass is the president of Seabreeze Partners Management Inc. Under no circumstances does this information represent a recommendation to buy, sell or hold any security.

InvestingReal Money (Preview)OpinionHow-toStocksShort-sellingEditor's Pick
Do You Understand
Your Portfolio?

TheStreet’s Fundamentals of Investing Course will teach you the keys to making the right decisions in any market.

Start Learning
Do You Know The 4 Pillars of Money Management?

TheStreet’s Personal Finance Essentials Course will teach you money management basics and investing strategies to help you avoid major financial pitfalls.

Learn More
secure your
financial future

TheStreet Courses offers dedicated classes designed to improve your investing skills, stock market knowledge and money management capabilities.

Start Learning
Get the Investing Edge.
Join Jim Cramer's Members-Only Investing Club
Become an Action Alerts PLUS member to learn from the pros how to invest wisely and build a customized portolio of blue chip stocks.
LEARN MORE
Uncover New Investment Opportunities With Our Team of Experts
Jim Cramer and his army of Wall Street pros serve up new trading ideas and in-depth market analysis every day.
LEARN MORE