April 24 – It started off well..and finished that way too

Wavy intraday market in a consolidating trend.


It started off well, and although one should not cry over spilled milk. XLE is a travesty. I was out early the past two days. I saw the trend break and used it to exit quickly, too quickly. There are a few other bummers out there, CALM. I moved up my stop and was stopped out… $6 ago… hmmm.
Everything commodity is getting crushed today. A major unwinding. My RIO position is off a bit.
On the very bright side:
UST announced some very nice earnings this morning and popped right into the sweet spot of my trade. I am up 1.5% on the day, even with some of my early exits.
AIG has broken out to the upside this morning. I delayed my exit on my hedge puts about 5 minutes too long, then I chased it and jumped the gun and I sold at 2.52. My bad, but the overall position is looking very good. For my 46c calendar. It is up 50% since yesterday’s entry.
UPdate, the May volatility is getting sucked out rapidly. Perfect for my spreads, not so good for the person who bought my put.
A couple of friends entered this trade with me… I don’t expect to ever have to buy dinner or drinks again 😉
TXN – is opening nicely too
RIO – added 1 unit of the 40p calendar for .79
I see us hanging in the index consolidation, even though we are experiencing some intraday chop.
My XLE 82p calendar opened a few cents.
I just returned from an afternoon of skiing A-basin. I didn’t want to do much more trading today. I have done well this past week. Today was quite good too. I was up 2.8% on the day. That makes the week up about 8% which I am happy about, and my acct has blow away previous high water marks.
The SPX closed just below resistance of the downtrend, yet I remain net long:
Delta (SPX weighted) 9.5 positive.
Theta 302 positive.
This afternoon MFE reports. Any thing can happen, but my Breakevens are wide, and I am entering this with a 1/2 allocation on in 4 different accts.
FRIDAY UPDATE:
It was a quiet day on Friday. SPX was up 10 at the open, then down 10 at midday, then closed up 9. End result, I’d have to say. somewhat bullish. The upward surge in the market closed us right on the downward sloping trendline. Do we break early in the week?
S&P A/D line was 353/143.
I thought we may see a selloff for the MSFT news. But no… the market opened up. It is a crazy market. I am looking forward to finding more of my “summer trades” in which I could care less what the market does. I mean, where I can really care less. Find my trade, and load up 5% of my portfolio with that trade, enter my position closing prices, then go play golf. Ahhh, summer.
Here was the day:
Fortunately I was only down 1%. That is pretty much what I expected from the day. After being up so much yesterday, and this week, there was bound to be a little volatility giveback. However, I was up 6.8% on the week. And that is up 13+% on the month. Very nice. Now I have the weekend to let some Theta decay happen.
The weekend is here, and I am up big on the week. I am going to…
Runaway

Trades:
RIO -exited 1/3 40p calendar for .82 and .84. The underlying broke down and finally rallied a bit into the close. It allowed me to get out with a very small .12 loss on just a few spreads.
IWM – picked up 1 additional 3 month May/Aug71c calendar for 2.20 with underlying @ 72.08 (May still has 1.20 of extrinsic value). On the next big down move( if we get one), I plan on rolling my 67p May/Aug into June.
RSH – opened a 2 unit position Jun/Jul 17.5p for .15. With monday being earnings, this 56 day trade has alot of time to be right, and the underlying’s bollinger bands contain the breakevens nicely.
Today was a snoozer, and even though we had a 20pt S&P range, there wasn’t a whole lot going on. I did create a scanner that searches out my “Summer Trades”. I look forward to get some bites soon.
SPX – 1397.84 DIA – 128.80 IWM 71.90
Portfolio internals:
Delta (SPX weighted) 2.99
Theta 277.78 (I am a little nervous about being too delta neutral without explosion positions going into the weekend)

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