10/8 – Mellow monday with good results, rockin tuesday

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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


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

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