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.
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.