The Bond market is closed, the stock market down slightly. The SPY bounced off my personal pivot lows 154.79, down about 10 on the SPX. The mid-pt pivot is 155.44, and the High pivot is 156.91 (These are taken from a personal pivot setting on ThinkorSwim Charts). I am looking to exit a few trades, and enjoy Theta decay on a number of others.
Preparing for the week with ShadowTrader:
I played poker last night until 1:30 then woke up to my phone alert telling me that I sold 3 units of UTHR, roll out of bed money.
UTHR – Sold 4 units – 70p calendar for .40-.45. It took 6 separate trades to fill my position. I now have no position, but this has been a wonderful series of trades. The spreads are moving out, and I don’t really expect to be filled again. I am thankful of the market to let me pull off this .30-.35 move 5 separate times over the past two weeks.
NVLS – 27.5p spread has moved out .14 to .40 for the spread on 10 units in 4 different accts. This trade maintains a 2.5:1 reward to risk and has 39 days remaining to expiration. And there is still a 3% volatility skew between Nov and Dec. I like where this is going.
LOGI – Nov/Dec 30p calendar still looks good. The vol skew on friday was up to 7% between Nov and Dec. It has now inverted to 5% in favor of Dec. Odd. The spread has not widened. There is still 1.40 in Extrinsic value for the Nov 30p option, and the underlying is ATM.
MER – Underlying is down sharply, this is very good for my Backspread, and GS is up slightly, again good for that Backspread.
There are a few others I am reviewing and have orders to pick them up, but with the slow market I think I am headed for a hike.
TUESDAY events. S&P Up 12. Dow up 131. GS up 12.
There was incredible strength as the market exploded to new highs on the the Fed Mtg minutes.
GS up 12. I got out of my 2/3 Jan 200c/220 call ratio Backspread. It was a great trade, although I exited @ 233.67 (previous all time high) as I expected some resistance. There was no resistance. The stock drove higher right until the close. It was an awesome performance. I bought this spread for a $12 credit, and sold it today for a $6.50 credit. A very good gain, however the spread closed at $3.60 credit. I am looking to enter a 220/240 or 230/250 backratio spread. Lots of potential here. I am looking for a low volatility entry.
MER – I exited this backspread as a scratch. I lost about $50 in commission, but a little gain in the actual spread.
PGR – exited 2 of 6 units of this Dec/Jan 20p calendar for .15. This has been a great trade. At the peak of this trade I owned about 150 contracts. I am working it off now.
My accts has been up after each of the last 13 trading days. I am very happy with that as I don’t know how much longer that stretch will last. It has been my goal to continually grow my acct by at least $400 a day. That has happened many days this summer, with frequently greater daily gains.
Here is a CNBC interview from earlier in the Summer with PrePaid Legal Services, Inc