11/29 – Back in the Captains chair and ready to go

I have been away from the computer for a few days. I am ready to make some good trades when they present themselves.

The past two days I spent at the ski area. The snow at Breckenridge is very good. There is still quite a bit of terrain which needs to be opened, however the 10 inches of fresh yesterday certainly helped. The temps up here are cold. 1* overnight, however the clouds have rolled in this morning and the temps are up to a balmy 26*. No new snow.
Here is a picture from the mountain 11/28
Today’s gameplan is to start looking for Jan/Feb Calendar spreads, and putting together a reversal strategy in the S&P and the IWM. I think yesterday and the prior day was a strong short covering rally, but I don’t think we are out of the woods on the mortgage crisis. A Bloomberg report came out yesterday talking about the Commercial loan market having substantial problems of it’s own. A possible 56 Billion worth of them. Nope I don’t think we are done.
UNG kicked my butt the past few days. I was holding this position unhedged and paid a price for it. Silly me. I finally exited @ 36.50. Ugg. NEXT!!!
ADCT – Opened 10 units of Jan/Feb 15p for .13 to.15, and 1unit of Jan/Feb 17.5c for .17, then fat fingered a 17.5p calendar for .17 in which I could have put on much cheaper. I am looking to build this out into a strategy. It has good potential and a 5:1 Reward to risk. 50 days until Expiration.
RHT – 9 units of dec/jan 20p for .20. Earnings announcement on Dec 20. I have been flipping this trade for a few days to check liquidity. Underlying is 19.95 @ time of purchase. 3.5:1 reward to risk. Not bad for a 22 day trade.
USB – I added 3 units of the 32.5c calendar for .27-.30. It is interesting that the spread contracted as the Underlying is 32.50, matching the strike.
I am very pleased with these additions. As my Theta is now 460, and I am 86% in cash, and I am slightly delta negative <-150.

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