End of quarter mark ups end on Thursday mornings. Oh that crazy mutual fund game. The technicals still bearish, but there are other reasons to consider buying. At this point I am still looking for reasons to sell. DSX looks interesting, and I am loving the COF short. I am looking at the 50day and 20 day MA as a place to unload half my position.
As of 8:40 am I sit on 820 negative deltas. I would like to gain some long exposure, but still keep my overall position delta negative.
I have looked to gain some long exposure with Volatility and Time Decay on my side. I have chosen to enter:
WDC – Sell Apr 25/30c at 1.50, 1.59, 1.70, 1.74 credit @ 29.73, 29.42, 29.06, and 29.03. There was a large bottoming tail hammer two days ago, and it caught my attention. The latest move created a W4 buy with a price target of 38 by August.
This thing CRASHED on huge volume. 3 million shares in 20 minutes. After it’s drop, it rallied hard up to 29. At 1pm I covered 2 units for 1.45 on a quick rally.
OIH – buy Apr/May 170p for 2.95 and 2.92 @ 176 and 176.15. Currently this offers a 3% volatility Skew, and breakevens of 160 and 181.5. Very nice! And it offers a 1.5:1 reward to risk. I like that too.
POZN – Bought 1 unit of Apr/May 10p for .19 with underlying @ 10.42 and front month option @ 1.80. I used this to hedge my Apr/Jun 12.5p
MFE – Bought May/Jun 35p for .45. Breakevens @ 31.80 and 39.20. There is a 4% volatility skew on the spread.
COF – Sold 3 units on a trend brake. Sold for 2.65 and 2.70 @ 52.20.
At 1pm the market went Crazy. It rallied up and I did some quick covering. I did want to lock up some profits in my directional trades. COF and WDC
It was actually a crazy day for me. Up 1.3% when all closed. I put a few nice trades on, although small. I wasn’t able to get much in size at my prices today. At the close I had 63 working orders and 16 filled orders.
Several indicators are turning short term bullish.