April 16th – Easy to jump a low bar

JPM and INTC report better than expected. But that doesn’t really say much.


The premarket is up strongly (11 S&P). That is very good for my portfolio as a whole.
Yesterday I made some good adjustments in KO, and some MRVL exits. This 1350 level was the barrier level I determined over the weekend. I am not exactly sure what I am going to do with this today.
It looks like JPM will end up playing out perfectly for me. I made the 42.5p adjustment a few days back, now I have the opportunity to roll the 45’s. This position was mildly kicking my butt, but things are better now. My CALM position has made a nice move off a doji bottom. There are a number of interesting plays to make today. Today will be a big roll and close out of April positions for me. I am very pleased with the portfolio performance over the past two weeks. Three weeks ago I was down 2.6% (worst performance in 18 months), followed up by 7% up last week, and 1% up on the first two trading days of the week.
Yesterday’s exits:
KO – 5 units of Apr/May 60p between .60 and .64. I still have 3 units.
POZN – 1 unit of May/Jun 10p for -.05. Guaranteed profit. Today they saw a 41% price spike in the underlying. Now I wonder what will end up happening with this spread.
COF – sold1 unit of May/June 50c for 1.25.
Morning update:
I am having a MASSIVELY good morning. Up 2% on the morning.
JPM, AIG, IWM, KO, CALM are looking very good.
JPM – Apr/May 45p rolls are complete for 1.10-1.15 credit. My initial risk is almost completely off the table.
HON – exited downside JUN 52.5p. I still have my downside exposure through HON.
KO – exited 3 units of Apr/May 60p for .75 and .80. It would have been nice to not have sold half my positions yesterday, but with earning this morning, I was happy to take profits on half and let the rest ride through today.
XLE – I could be getting in front of a bus here. I put on a small allocation of a bearish May/Jun 77p calendar for 1.18. Underlying 81.25. I will put an additional allocation if I see XLE breakdown. This is incredible to watch. It is strong like bull.
GAS TAX debate-
I think I understand both sides of this one. And while I want the American public to not be complacent about cheap oil and gas. And it takes away from road and construction projects. There is no question we need to solve our dependence on foreign oil.
Repealing the Federal Gas Taxes for the summer is a fantastic idea. It is much better than giving every person $600. It is a stimulus package that actually benefits the working class American. And as a percentage of income it best helps the lower income American. I certainly hope this gets passed for the summer. Because 200, 300, or $400/ month. $3000/yr/car is a lot of coin for a family making $50K a yr. I am not sure how the majority of Americans are doing it.

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