June 16 – A bit glum

I’m draggin…

It is said, that if you were a dragon slayer, and there were no more dragons how would you feel.
I am feeling a bit that way right now. I can’t find any really good set ups for a few types trades that I really like.
This made me feel better though…

The market is about even on the day. Not much happening except for a little pain in KO.
I have been finding a few nice range trades, but I have been doing nothing of real size. And the last size trade I did, perhaps a bit oversized was KO. That is somewhat painful. And unfortunately, it as well as a few other trades has given my P/L a move down this month. About 1% on the month, and it doesn’t feel good. I don’t plan on finishing the month off that way.
I still sit on about 80% cash looking for good opportunities. I don’t want to get long here, although I do think we have a few points to run. I am a little exasperated at this point. Just waiting to find the right trade to deploy capital. I am indeed a DragonSlayer in need to finding a Dragon. It wasn’t such a big deal when I was working a job to bring in the living expense income. As trading was great additional income. But at this point, this and PPL is generating my income.
I am being patient in my entries, and conscious of not over trading and being reckless.
Today’s adjustments and trades:
USB – entered 4 units of July/Sept 30p @ .65
UST – Exited remaining 5 units for .90. The stock ran away from me today, and I chose to clean it out and take the cash. I am looking for other calendars here. Calendars, butterfly, or straddle/strangle swap. The current two month butterfly was very good to me. Bought for .75-.80. initially rolled from May to June for a .75-.95 credit, and now sold for another .90-.95 credit
APOL – Opened a small 2 unit position of July/Aug 50p for .73-.75. Breakevens 44.25/57.25. Volatility is slightly elevated, and there is a 8% vol skew between July and Aug.
IWM – I made a few nice adjustments of the JunQuarterly/Aug 75c spread. I rolled from June Quarterly to July. I made the move at the R1 @ 74.00 on the IWM. This now takes my overall IWM position from Delta Positive to slightly Delta negative.
My Position Greeks (SPX Weighted)
Delta -.15 (that is right nearly delta neutral)
Gamma -1.2
Theta 156
Vega 620
Portfolio was off .8% on the day.
Tomorrow morning will offer quite a bit of data. I am curious to see what happens. The VIX is down slightly on the day 20.95.
I am going to get some rest, and look for a few more trades. I have a few index ideas to the shortside.

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