Heading off on short vacation in the morning. No expirations for me until August as I either closed or rolled out. Will be watching by iPhone, but not trading until next week. Here’s hoping for that pull back by then so things will settle down a bit.
Best of trading to you all and see ya next week. @Jeff, keep rooting for that pullback!
Daily Archives: Tuesday, July 12, 2016
$UVXY #CoveredCalls – sold all…
$UVXY #CoveredCalls – sold all the following today
UVXY JUL 29 2016 15.0 Calls @ 0.15
UVXY AUG 19 2016 19.0 Calls @ 0.23
UVXY AUG 26 2016 19.0 Calls @ 0.32
$HUM #ShortPuts #FallingKnife #ScalpTrade -…
$HUM #ShortPuts #FallingKnife #ScalpTrade – Sold HUM JUL 15 2016 140.0 Puts @ .60.
These expire Friday.
Humana was the only stock in the SP500 to hit a new low yesterday.
Market
I was thinking over the weekend about all of the insurance companies, banks, and bond funds that have maturities this year and the level of rates. It makes no sense to buy a 10 year treasury note at 1.40 or an even lower yield. The cash from maturities has to go somewhere and I can only think of the stock market and property. So stocks are the only place to go that is liquid and with no increase in site this year, it looks like a higher market.
Having said that, there is always a black swan event that could happen to give us the correction that many of us want to see. All I do know is that when this ends, it is not going to be pretty.
VIX stabilizing?
Yes, I’m wanting some down side, so of course I’m engaging in some wishful thinking. I do believe we will be above 2200, probably closer to 2300 by year’s end. But when will we get pullbacks? I need one now to adjust my spreads higher. One thing I’m seeing today is a flat VIX. It opened at a new low but rose back to flat with the SPX pullback that started around 9:50 ET. Now as we’re higher, VIX is flat. I’d think less of this if we were down below 12, but 13.60 is not really low. Could this mean some downside or at least stabilization into monthly expiration?
NUGT
Sold one contract of the August 19 120 put @11.50
USO follwed a long put…
USO follwed a long put spread over at TT Sept 16 11/9 for .51 debit
SPX Call spread
STO Aug 26 2210/2220 for 2.15.
How high can she go? Anybody’s guess, but I’m thinking we will get some pullback to around the 2120 level of the breakout before then. Not selling puts yet as I like to wait for the pullback. Sure as I sell them now, I’ll be rolling them or taking losses at the pullback. So, trying to be patient.
Closing UVXY
#VXXGame Closed my last positions that expire after the upcoming 1:5 reverse split on 7/25.
Bought to close $UVXY Jan 20 95 calls @ .18. Sold for 17.00 and 19.00 on 7/8/15 so this will be considered a long term gain for tax purposes.
NUGT puts
#ContangoETFs Bought to close NUGT Sept 40 puts for .40. Sold for 5.40 on May 19th.
Sold to Open NUGT July 29th 120 put for 4.50.
SPX roll call sold
#SPXcampaign Sold to Open $SPX Aug 26th 2180/2200 call spreads for 7.30 as a roll. Crazy, i know, but is it crazier than this bull run? May be stopped out and rolled again if we get much above 2160.
SVXY
STO august 26, 40 puts @1.05 and I think that will be it for today unless there is some event.
Closing FXE
On a bit of a recovery in $FXE, I closed the Brexit trade for a decent profit.
Bought to close $FXE Jul 15 110.00/110.50 strangles for 1.95 (sold for 2.51 on 6/22).
Closing FB
Bought to close $FB Jul 22 104 puts @ .03. Sold for 1.07 on 6/13.
Purple Haze…
With all due respect to Jimi Hendrix, this market reminds me of…
“Purple haze, all in my brain
Lately things they don’t seem the same
Actin’ funny, but I don’t know why
Excuse me while I kiss the sky”
Dow joins S&P…
…in all time highs. Nasdaq not too far behind… Russell is the laggard.
VIX Upside Warning continues
As is the historical norm, more upside is expected after the VIX completes three consecutive closes below the 78.6% Fib line. That happened Friday, and today we’re looking at our 8th rally out of the last 10 days. How much farther we go is hard to tell… Upside Warning usually fires about midway between the bottom and top of the SPX run, but there are fewer examples to draw from when we are in all-time-high territory.
In other news, of course, we should open with a fifth consecutive day of all-time lows in UVXY and the third consecutive one in VXX.
SPX calls stopped
#SPXcampaign Last night before the close: Bought to close $SPX July 29th 2155/2180 call spreads for 7.50. Holding off on rolls until freight train slows. Also have one ITM call spread in August… since it is still a ways to expiry, rolling is still possible if no pullback comes within a week or so. Not ideal to roll ITM, of course, but I left this one behind as I focused on rolling more immediate expiries.
Options Bistro 