April 9th – Market is off, testing Support on light volume

I am somewhat paralyzed to move here. The acct is gaining Theta $$ though.


There is much noise in the market right now. The Macro economy is in the crapper, there is a huge Federal impluse to create support in the market as we prepare for elections, and this pullback is on light volume.
I have been adjusting today. The accts are down very slightly (.1%), which is to be expected after a large gain the past few days. And if I hit two of my speculative plays (POZN, CTXS) That will increase the accts 1%.
I was very lucky on one trade yesterday FDX. I put a downward directional play on it, it was technically induced. However, I didn’t know UPS was reporting. Fortunately UPS reported crap, and this morning oil and gas inventories jacked up prices again. That said, I like where my FDX position is moving.
My morning trades:
POZN – sold 1 unit of May/June 10p for .35. Nice 2 day double.
KO – 3 units of Apr/May 60p for .55. This is to add to my 1 unit from .30. 9 days left in the trade that can double. I like it.
CTXS – bought 1 more unit of May/June 30p for .28.
FAST – adjusted – bought back 1/2 of my April 40p and sold the Apr 45p for an .85 and .90 credit. Again lots of premium in selling the Apr 45 against my existing May 40p long. As long as the underlying stays above 43 for the next 9 days, this adjustment will gain in value. I made the trade at the 50% retracement (46.95).
SDS – bought 1 unit @ 60.97. This inverse ULTRA S&P has some room to move. It shows a rounded bottom with not much resistance above. Also, the A/D lines was solidly negative 4 negatives for every 1 gainer, and the TRIN was 1.45. There is certainly the ability to drop further. The S&P also bumped the underside of Support #3. It seems like a major bearish signal. We will see. I also built in a 5:1 reward to risk.
The acct is up 1.3% on the day, and the acct is again at all time highs, with 394 neg Deltas, and 406 positive thetas.
I am very pleased with the discipline and trades that I have on. I would have like to take off a few volatile trades off today. Specifically CTXS and POZN. All and all, the trades are in good shape and with April expiration rapidly approaching Theta is building quickly.

Leave a Reply

Your email address will not be published.