I just heard this evening that the Chicago Merc is raising margin requirements on Grain/Ag futures. I immediately wanted to short the DBA. Unfortunately the news came premarket, and the big fellas sold the DBA. However, I will be looking to buy some puts on it.
Another effect could be an increase in stock prices as hedge funds look for a cheaper place to do business. i.e. stocks. Regardless of market headwinds… and there are significant ones. But I am looking at a few different scenarios.
Within the first 15 minute I had a 13 trades go off. it was interesting to watch everything fire off fortunately for about a 1.5% early morning portfolio profit. Very nice
BSC sold Apr/July 50p spread for even. I just wanted to get out of that disaster.
WSM – Sold 5 units of 25c for .45, .47, and .50. Sold 5 units of 22.5c calendar for .40 and .45.
Those offered modest profits. About 30% after commission. I didn’t want to hold those through today’s earnings.
MRVL – Sold 2 units 10p calendar for .22. I just wanted to lighten up my risk on this trade. It offered a 20% after commission trade. I still have 6 units on.
MFE – Bought 5 units of May/June 35p for .43. Bought 3 units at .37.
WDC – Unfortunately I held on too long on this one and took a beating. Originally bought final 2 spreads at 2.45, taking a .70 loss @ 27.60. However, this was a very small 2 contract position to be used as an upside hedge. With the market down today the acct remains to be in good shape.
POZN – Sold 1 unit of Apr/June 12.5p for .48
EMR – Bought additional unit of May/June 50p for .57
as of 8:30am MST, I maintain a 586 negative delta position.
At the close my accts were up 2.2% and I maintain 506 negative deltas and 210 positive Theta points. My acct sits at an all-time high, and I am pleased. There are no huge winners, just lots of small winners. The only losers were WDC, and MFE. I am not too worried about MFE, as I just opened the positions in the past few days.
This is one of my favorite Suck my Nasdaq/ hit the bid videos
I re-entered 4 units of UST calendar. I am going to look to enter another 6 units early next week.
At the end of the day, my acct was up .2%. I am please with that after such a nice run up this week. Overall 4.6% up this week, and about 7% for the past two. I am very pleased with that, especially after getting killed in BSC two weeks ago.
Going into the weekend I am negative 498 deltas, and positive 229 theta points. That is just about perfect for what I think the market is going to do.