Going into the week I certainly have a plan. I am looking for today and perhaps half day tomorrow being down. Then seeing a reflex rally off the 1320 level in the S&P. I see that we may end thursday around 1340-1350. Even though I am officially Bullish in my deltas… Positive 664 on Monday morning. Fortunately Theta decay has been winning… 587 positive Theta points right now.
I have been making a few adjustments and buying a few spreads and selling a few spreads.
KO – Added 3 units of Apr/May 60p for .53. This is a bearish to sideways trade with very nice profit potential with 4 days until expiration. It is an odd trade. Originally put this on for .33, then added 3 additional units at .55. It is a slow burn, but the next few days should see this open up. The April 60p should expire worthless, leaving me long May 60p.
JPM – I took the opportunity to roll my Apr 42.5p to May 42.5 for 1.10 and 1.11 credit. I originally bought this spread for 1.03. So risk is off the table. Unfortunately the JPM diag calendar adjustment has turned to crap. A market rally will benefit this position.
RRD – Added 3 more units of May/June 30p for .25. looking for more. May 6th earnings date.
AIG – exiting April/May 45p for 1.93-2.00. Even though the underlying is running against me, the spread opened .20 today. It has allowed me to exit this for a very nice profit. Overall, this trade, including roll credit, has earned me 3.00 per spread. Excellent.
This one is looking interesting. ENER calendar. The breakevens encompass the underlying price range, and a substantial Volatility Skew.
CALM – Long with 1 unit of stock from 28.75. Stops are set. 8:1 reward to risk. I am also looking at some other bullish/sideways strategies. I also liked it’s relative strength today.
As I wrap up the day, so far so good. Thinks are happening as planned. I am taking some heat on certain positions. Yet overall, Theta is beating delta.
I close the day with a .6% gain (At a new acct high). 26.58 Positive Deltas (SPX weighted), and 623 Positive Thetas. And I am 49% invested (The highest in the past 18 months)
I’m loving this market. I feeling like I am leaning properly here.