Yesterday was a good but quiet day. On friday I received a “notice” from the IRS, also notice that “The IRS” spells THEIRS… hmm. Anyway, they mention a few things including one trade with net proceeds of $122,010. Now that will put some starch in your shorts. Called PrePaid Legal (they are awesome), my CPA, and my former brokerage OX. I should have it figured out by friday.
I am doing pretty well in my trading this year, but I haven’t had a $122,000 profit on a trade, YET.
I missed the Accounting irregularity in PAY today. I may be short of this by tomorrow afternoon. Blood in the water. And so that I don’t miss these too much I am adjusting my GOOGLE NEWS feed! It is an awesome product, and certainly worth it’s cost (free + your preference info). I have been putting the companies I own as a topic, that way I can quickly see if there is any breaking news on my stocks. Now I will add “Accounting Irregularities” and “Restate Earnings”. The program goes out and aggregates feeds to quickly scan. I have been using this type of set up for the summer. It is a very good screener. Also, the TOS platform has a good streaming news feed. It is very similar to a bloomberg machine.
Monday trade, I just adjusted out of one position:
PDLI – exited 2 units of the Jan/Dec 22.5p calendar for .01. I lost 4 cents plus commission on this leg. It was ITM with no premium left. So rather than get assigned, I decided to take it off my books. I did a little better than breakeven on this trade. About a month ago I make .05 on 4 units. I still have the 25c calendar OTM, in case the underlying moves up.
Other than that, as of monday night, theta decayed as modeled and the market moved down to take advantage of my negative delta portfolio. Currently I am -331 deltas, +601 of theta, and 525 of Vega.
Tuesday is fluctuating trade by mostly lower. I really like where I am right now. With the SPX off 6pts by deltas are nearly neutral @ <-100. Theta decay is still around 580, and my acct is fluctuating on around a 3-4% paper gain on the day. Everything is really ideal. There are a few data points which I am looking toward. 1) Employment numbers on Friday 2) Fed announcement text tuesday. Either way, this is good.
Trades on Tuesday:
PAY – bought a few Jan 22.5p. I want some downward exposure on this "Accounting Irregularities". I bought these puts with the underlying @ 25.
USB – I bought 4 units of Jan 32.5 Straddles @ 2.74 to take the risk out of my extensive Dec/Jan calendar spreads. If I can take off half my risk off the USB Calendars, I will take off these Straddle Hedges. I will be out of these before 30 days until expiration.