At the open there was a slight gap up, then fall back. I had put together a list of shorts last evening. It was designed for a day to fade this move. There are a few good opportunities out there. I have to get better at taking advantage of moves like yesterday as they are happening. Sell Sell Sell, no…. buy buy buy… huh??? It is a funny market. My short Iron Condors and Double Doubles are loving this market.
I am using 10 different option strategies right now. All of which are taking advantage of theta decay (VIX 25). I have not been filled on any of the micro calendars this week, so I am looking for a few directional trades. I am trading very small right now, as I this market is somewhat confusing. The styles of trade I am using are, Bear put spreads, Butterflies (standard and skewed), Bear Put, Bull Call, Skewed Calendars, front month calendars, multi-strike calendars, Iron Condors, and Double Doubles. I like the theta decay strategy going into the Labor day weekend. This week has been relatively slow and then we have the 3 day weekend for extra theta decay.
Currently I feel like I am leaning to the downside, but in actual fact my acct is delta positive.
Platinum Weird – Will you be around?
My moves today:
MATK – Sold 1 unit for a quick overnight profit. Bought 3.65, sold 3.90 (Underlying bought 25.97, sold 26.45) I just don’t feel good about long positions right now. I feel fortunate to have made a profit on that trade. I bought because there was previous support, and I sold because there was tight overhead, lower high resistance.
AIG – Nov 70-55p, I am in as the underlying is 66. I am playing this one down. The trade benefits from theta decay, and a downward move in the underlying.
IWM – I am looking at another entry for this issue. It was the weakest of the indicies yesterday, losing 2.7%. In the afternoon break to the upside, to took the offers off the board.
AMED – Sold 1 unit 35p for .20, and 1 unit of 40 @ .15. I have now sold half of my original position with a nice trade profit.
SPLS – sold 1 unit for .10. This is an .04 profit after commission.
Pro-Growth Agenda. This guy rocks.