I like the action of the day. Down pretty hard, and now SPY support @ 150.50. If it cracks below that 50 MA support, look out below. And though the market feels quite heavy, there has been support at this 50 MA. I have a few inexpensive SPY butterflies between 143 and 149. The can protect some of my positions if the market falls.
I would prefer that the markets hang tight for awhile with all the calendar, and short Iron Condor positions I have. Overall my portfolio is Delta positive (not exactly what I want), and Theta Positive (very good going into the weekend).
I picked up more CREE this morning 2 Units 30c Jan/Dec @ .01. As the underlying increased, all the CREE spreads widened. .12-.15 in the spreads. Now were talkin’. I will start selling some units @ .25
USB – I now have 3 units @ .05 35p July/Aug. I would like to have more July/Aug calendars
FITB – I took a stab at this one a few days ago. However, the rates seem to be hammering the banks. The stock continues to drop. The 45p Aug/Jul is printing at even. I will put 1 unit in for Even. I don’t usually buy more as the trade moves against me, however, the only risk is commission ($20 for this unit, no more if it gets assigned). It is a fair value bet, especially if the market moves up in the next month.
RACK – A new position opened with 1 unit today. 12.5p Sept/Aug for .10. The pattern has been sideways for 3 months. 10:1 reward to risk.
COGN has been a wild ride in the underlying. It has rallied back above the opening price after a wicked selloff. I will hold the 40p july/Aug Calendar until after the weekend. It has acted very well.
BIDU – Excellent. Rallied with GOOG back between my Calendar 155p and 160c Aug/Sept spreads.
BUD – The spread is widening, but the underlying sold off some today. 55p Sept/Aug
I didn’t want to sell any calendars going into a theta decay weekend. And then the following week is the July 4th week. The markets could be volatile, but on lower volume. I would like to hold through that week if possible to let more Theta decay work for me.
I like the action of the day. Down pretty hard, and now SPY support @ 150.50. If it cracks below that 50 MA support, look out below.