8/10 – Going to the pool

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Wow, there is panic in the streets. Heavy selling. I have 51 orders on the board.


Wow, there is panic in the streets. Heavy selling. I have 51 orders on the board. Some to buy, some to sell. I am out there with some nice orders. I am attempting to get a number of cheap fills as people are freaking out and buy puts indiscriminately. The VIX is approaching 30. My acct is up 10% in the past 5 days. Very Nice.
There are rumors out there that the Fed may reduce their lending rate by 1/2 pt, or injecting liquidity into the mkt. That would be huge. I don’t want to see a lowing of interest rates, that would crush the US$. Several central banks are freeing up cash for liquidity. Interesting.
What are friends on Wall Street for?
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During this market movement, I have had 86% of my portfolio in cash. I am looking for opportunity. That is not too difficult when I have 130 spreads on for even or a penny, and when the trade goes well it ads a few percentage points to the portfolio. The cash safely earns 4% while it sits on the sidelines, and that is ok with me.
I am putting on a multiple calendar position on a few stocks.
OMX – I picked up a unit of the Dec/Jan 32.5p and 30p for .04 and .05 respectively. This goes with my 35p calendar. The Breakevens have now widened to 26.10 and 42.80. That feels pretty safe, even in this mkt. Currently the Reward to risk is 20:1. At the end of the day, all three legs are up slightly.
GOOG – I exited 1 butterfly today @ 3.60. I took a .60 lose, because the price broke below the breakout high. I still have 1 to test the waters to the upside. My directional trading has been challenged in this mkt.
MATK – I exited the Dec 25c-30 @ 2.00. I lost .20. I was out on this breakdown. I still own the Dec 20-30c, it is currently up slightly.
PGR – Jan/Feb 20p. I bought these for .005, and sold half of my position back for .20, Very nice. I still own quite a few of these, 5 units in total.
Today my family is going to enjoy 100* weather in Denver @ waterworld. It should be fun. The market will probably crater before the weekend. MATK is slightly under water, and everything else is up (P/L).
Satriani’s Summer Song

One thought on “8/10 – Going to the pool”

  1. Jonathan, on your calendars, how can i tell whether you are bullish or bearish?
    yep – still look forward to reading your blog daily, mostly trying to figure out what you are setting up
    thx

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