10/5 – Employment numbers – Pop goes the S&P

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Job numbers show growth. As does my acct. And as that I have no job, nor do I really want one, the economy is moving ahead nicely.


Job numbers show growth 110,000 new jobs created. My acct has been showing excellent growth over the past two weeks (up each day for the past 10). And as that I have no job, nor do I really want one, I still applaud those who now have a job in the US. If the Fed cuts rates again it would certainly be prostitution on their part.
There were some great happenings yesterday, and even better payoffs today. I am staying conservative in my approach, although it seems the market has some clear sailing to the upside. I would like to have more confidence on picking direction. It feels as though the open space to the upside offers an edge for traders. I have my GS backratio spread exposed to the upside, and it is hedged with the MER backratio to the downside. Playing direction without a hedge is difficult for me, it seems too much like gambling. So what do I do? Play lots of Delta neutral stuff, and slight volatility skew calendars. With a drop in the VIX I will start looking for Straddle/Strangle opportunities. It is important to know what sits well with me as a trader.

Wow, Helio and Julianne rocked the Mambo.

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Thursday Trades:
RHT – Exited 1 unit Nov/Dec with a slight profit. .40. There wasn’t much premium in the front month option, so I exited for a .10 profit. I am on to the next trade.
PPCO – bought 10 units between even and .10 credit. The majority were for .10 credit. There was a huge block option trade(3500 contracts) between the Dec and Jan options. Buy the end of the day the spread had corrected. I had very nice gains. I sold 1 unit @ .12 on Thursday, and 2 units @ .15 on friday. A .20+ profit over night on 200 contacts was niiiice.
NVLS – Bought 2 more units Nov/Dec 27.5p @ .28-30
PDLI – I legged out of 4 units of the Jan/Feb 20p calendar. I was not getting filled as a spread, however I saw the opportunity lean on a december order for 255 contracts, and buy back my Jan contracts for .70, while selling the Dec for .85 into that order. It was a nice way to make a profit on the trade. I was somewhat worried as the underlying moved away from my strike, and knowing that PDLI put themselves up for sale.
LOGI – bought 1 more unit of NOV/DEC unit @ .30
Fridays trades –
I am working on adjusting risk levels in positions.
PPCO – I exited 4 units @ .15 and .17. ALL of my initial risk is off the table. The profit on these 80 contracts was .25 and .27 per contract. I still have 7 units on. This trade was placed in two different accts. 1 being a ROTH IRA, so no taxes there!
LOGI – The underlying moved to 30.25, and this NOV DEC 30p spread is in perfect position. Oddly the spread tightened, so I put on 4 more units. 1 @ .30, and 3 @ .25. I wasn’t able to be filled @ .20.
NVLS – This spread ( Nov/Dec 27.5p @ .27) moved to the top of it’s daily pivot and the top of the recent resistance, and then moved off the highs back into the upper 1/3 of its consolidation range. I like this trade alot and that is why I have established a 1/2 allocation (full allocation 5% of acct) in 3 different accts. so far, 3 units per acct, 9 units in total.

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