Well, someone thought they should sell. I’m not being an alarmist here, but wow. There was some major league selling in the am session. VIX is pushed 23. Nice.
I played a few quick sell trades this morning. They were very short term plays. Curbs for program trading at 9:16am. Interesting. That could cause non-program trading to kick in. So far my acct is holding it’s own. It helps that I am in 73% cash. I have been having fun the past two days selling puts and hedging them in calendars. There should be some good happenings, as the Vol drains from the front month.
Here is a very big development. The TNX (US 10yr), broke below support a trendline and fibonacci support @ 4.80% for the 10yr. Money is flocking to “safe” havens.
MHS – It is a W5 sell. I traded an OCT 75c. For this type of short term it is better to trade a ITM aug or sept option (high gamma, High Delta), however I didn’t. Honestly I was very fortunate to have made $$ on this one.
CY – It is a W5 sell. I have 2 units of sept 22.5p (@24.66). My price target on this is 21.25. If it breaks 23.80, I believe we are headed there. The SOX index should have support around 514. A break of that could cause lots of damage. I am using this as a hedge to some of my longs.
ABI – has found resistance @ the 200MA (32.80). My Aug/Sept 30p calendar offers nice potential if we continue to fall.
I added to DTV as my plan suggested, 1 more unit of the 42.5-47.5c. However, premium in the DTV Calendar has now evaporated. So I will not put anymore calendars on, therefore not anymore verticals either.
IACI – has been hammered again. The position is up nicely. The remaining unit is up 150%. And about .90 into significant Theta decay territory.
ACLI – is starting to correct. My 20p have moved out to .15. I would like to see them out to .25.
I added 2 more units of the 22.5p Jan/Dec for EVEN. I very pleased with this trade. There is lots of premium in this! It is almost comical the Reward to risk. 20:1. sheesh. Right now the BE/ is 17.15 and 27.85. My ave price on these is about .03 for the entire position. It has been in a W4 downtrend for a few days now, but I am ok with it.
CREE- I am very pleased to have sold out my 30c spreads. I still have 15 contracts remaining. I will just hold these until I get the right price. I had sold 180 contracts over the past week. I am good with holding onto these. 50MA support is at 25.51. (as if that matters). I sold 1 unit for .35,
MFE – I sold a unit of the Aug/Sept 35p for .31. This unit was purchased for .23. I have a remaining unit purchased for .20. There is still a 5:1 reward to risk for this trade.
SPF and the homebuilders continue to be a major looser. However, if the underlying stays above 9 for the next 3 weeks I am at max loss. I can earn with my Jan/Dec 15p calendar (.05). I think this could turn out OK.
ONXX – 25p Jan/Feb – I put 3 more levels for EVEN, as the underlying price rose. There is 2.25 in premium in this OTM calendar. My max risk on this position so far is .01 per spread + comm. I like it.
SPLS – 3 units of Jan/Dec 25p ave price of .03. It has just moved below support today,so I will not be putting anymore of these on.
WWY – has moved back toward the center of the Risk Graph 55p Sept/Aug calendar. EXCELLENT. I am glad I was patient, as this had been drifting up and out of the graph.
SUPPORT LEVELS- what are those???
SPX – 1447.7? 200day MA
DIA – 133.3?
IWM- 77.5 Ripped through 200ma. sheesh.
Well, someone thought they should sell.
I played a few quick sell trades this morning. They were very short term plays. Curbs for program trading at 9:16am. Interesting.