Well the Rockies Lost, and I am not able to go to Game 5, bummer there. But more importantly, my November Calendar Spreads are in great shape and I had my most profitable trading month to date. Sunday night was a night to start looking for more great trading opportunities moving into December.
First of all, this has been a very appropriate pullback. The S&P has tested the middle of the channel, and the 50 MA. It may chop a little before the fed announcement. It seems the move up would offer the path of least resistance (50&200 day MAs).
I have a few calendars that I really like: LOW seems to be a great sideways possibility.
Check out the multi-year sideways action, and the triple support down low, as well as 50 and 200 MA resistance. I have a couple of really good ideas here this is a 5% trade.
I have put some money down on this one. I have bought Dec/Jan calendars. 6 units of 27.5p for .17-.20. and 3 units of the 30c calendar for .20. I like the reward risk (2.5:1), and especially the chart.
EK looks like another sideways creeper. Earnings is this week, but after that, what is the catalyst? There has been a very big uptrend from 2005 that has me slightly nervous. I have ideas to play this two different ways. Both are High Reward to risk, with relatively low downside using butterflies and calendars.
I have chosen the 4 units of the Dec/Jan 27.5p calendar for .20-.22, I will now also look to the 30c calendar as a hedge. I also think this will benefit if the underlying jumps.
VRTX offers some nice possiblilities. It requires a combo of a few positions to get it just right.
The spreads I was looking at jumped, and I decided not to follow.
This on is interesting, GG. It is not in a range, however I think previous resistance will become support. As the underlying moves down (which I think it will), I will be able to hedge the upside of a calendar with calls or a call spread. This is certainly not a typical sideways trade, I will adjust my risk accordingly.
I didn’t like the price action on this for a sideways trade.
Other trades:
PGR – I exited 1 unit of the Jan/Feb 20p for .15. I still own 3 units. This trade has not opened as I had hoped, and I will be exiting as I am able.
VRSN – I exited 2 units of Nov/Dec 32.5p for .45, I still have 1 left. My 35c calendars have opened nicely. The reason for the sale, is that the 32.5 hedge worked well and gained some profit, while the stock has had a nice consolidation, it looks as though it’s move is trending higher. The 35c should be good as expiration draws closer.
UNG – Nov buy 39p/sell 44c for .45. to collar the stock. I messed up slightly. I should have waited until well after the open, as this collar dropped quickly in value as the underlying moved up more than a dollar. I guess it is better that my “house” rose in value, than needing to use insurance that it dropped in value. I bought 100 shares of this for 38 last week, now it is 41. I will look to move up my protection from 39p to 41p on the next upward move in Nat Gas.
UNM – I also added some downside calendar protection 1 unit of Dec/Jan 22.5p.
Not that Cramer is my political goto guy, but I like what I am hearing.
Gearing up for Dec calendars.
Rockies lost the series, but at least my second favorite team won. I really couldn’t lose, except for not being able to use my Game 5 tickets.