Companhia Sanea (SBS)

[flatlander_60048]

The ability to trade around the core and sell calls has definitely made it emotionally easier to tolerate the volatility. The problem is you need to decide what percentage of you holding that you would be willing to sell which can also feel bad when SBS goes on an extended run (which we both believe it will at some point). I usually find that market volatility gives me enough chances to repurchase if I desire to.

SBS has been firming the last couple of days, and almost looks like it is becoming negatively correlated to the S&P (see chart below). Tue&wed last week and today SBS appears to be moving opposite of the SPY. On flat days not much happens. For me, this would be a positive if it persists, since I still have exposure to the US market. However, a week is to short to read too much into it.


http://finance.yahoo.com/echarts?s=SBS#{"range":"5d","allowChartStacking":true}


Regards FL