As per my plan from yesterday, I exited some short positions.
Both ATI and ENR Drove higher at the open. I waited for 5 minutes and waited for the opening pullback and covered my positions into it. I am pleased with that decision. With employment coming out on Friday I don’t want to have too much directional exposure either way.
Again my gut is telling me we have moved down 700+ Dow Points in 5 days. And the market is finding strength with any good news. (The Charlie Gasperino 3pm Ambak put story may be running out of gas in the future).
ENR – May 100/85p for 7.25 @ 93.03. Re-entries around 95.
ATI- APR 80/70p for 5.10 @ 74.75. I will look for re-entries between 79.35 and 80.78
DFR – Bought 600sh @ 2.86. There was a huge 687 lot order @ 2.85. I was leaning on that, and a previous low of 2.84. I am looking at this as nothing more than a quick daytrade.
I got out @ 2.97. The upward move stalled. And I think we will have a buy the rumor, sell the news reaction on ABK (mortgage insurer).
It was a goofy, do nothing day. As I sit, an hour from the close. I am happy to be mildly long. Delta positive 460, Theta positive 170. And up about 1% on the day.
I just have about an hour to adjust and put a few trades on.
Basically, with the ABK info out (dud), and talk of a few credit defaults has tempered my short term bullish outlook. I want to see how the market reacts off the open. SP futures were down 12 in the premarket. 7 at the open. The SP ended down 29, Dow was down 220. NDX 50. The market is broken. It is a crazy place right now. Look out below.
AIG – I just locked in my profit on AIG today with a March to April roll of my short strike for 1.05 and 1.07. I bought the original Mar/May 45p calendar for 1.02. Now I have the April/May 45p calendar on. I was a little nervous with this break to all-time lows in AIG. This gives me some time to wait and let volatility settle down.
MRVL – Sold 1 unit of Mar/May 10p for .34. This would have been much better in the morning, but I wanted to take some risk off the table. I think 85 spreads is enough.
My P/L is getting pounded right now, mostly in UST, MSFT, and T. But I am ok with it. In fact, I am looking to create new Apr/July positions in UST.
Tomorrow morning’s job report will be very pivotal. With all the negative talk, I think we may have a huge gap down, then I would like to dump my short positions and fade the move. We will see though. Very interesting.
Exited some shorts. and looking for some other opportunity today. Unemployment report on Friday.