Nov 15 – Dec Volatility Suckout

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The market is starting to discount the December options prior to the Thanksgiving week, and my positions are loving it.


It has been a busy, and enjoyable morning of selling back calendars to the market. The gap down morning was perfect for the portfolio. I am getting ready for an brief options seminar tomorrow and an upcoming trip to California. With my initial trade risk off the table, I now sit on a few hundred contracts which are paid for with previous gains. More importantly the underlyings are sitting right in the sweet spot of their trends.
This has nothing to do with trading. I just wanted to point out a few funny lines:

The pronunciation… “Nuuts”.
“I like this color black, because it is quite slimming. And this bra gives you fantasic cleavage” Ahhhh, no Louise you are quite slim and have fantastic cleavage. It is not the bra.
And of course the final line, “If my boyfriend bought me this I would say, Thank you very much, and I would take it the next day to a NUT SHOOT.” Haaaaaaaaaaa, LOLOLOL……. Nuff said…
Trades so far;
SPY – Unwinding my Nov short Iron Condors and assorted credit spreads
HRB – Sold 5 units of 20p for .33-.34. Sold 3 units of 17.5 for .31-.32 Pop goes the December premium. What lack in the size of the calendar price, I make up for in Volume. Mortgage is paid for the month of December now.
IWM – exit 1 unit @ 77. Even though the position was working I wanted to exit as the index approached a congestion point around 76.85. My target had been met.
SKS – exited last unit of 20p calendar for .25. The stock popped this morning and I don’t want to be involved any longer.
INTU – added 2 units of 30p calendar for .28. I’m not going to be too aggressive here, as earnings is this afternoon.
USB – Exited 2 units of the 32.5c calendar for .35. I still have 7 units, and am currently up about 600% on this trade so far.
NVLS – exited 1 unit of 27.5c-30c spread for .75 on an upmove this morning. I wanted out of long premium before the weekend.
Speculative trades! I felt a little bored, and the risk/reward looked very good.
I put these on during the course of the day. If I get these right, the Dec volatility should get sucked right out of them.
SBUX – 2 units Dec/Jan 22.5p calendar for .15 The underlying was 23.84 and I am taking a cheap shot that SBUX will disappoint and the stock will fall.
INTU – 4 units – Dec/Jan 30p calendar for . 28. I tried buying cheaper but no doing. This was the cheapest could get the trade. The underlying was 29.30. This trendless tech giant will hopefully pay off.
FRIDAY TRADES: I just put these orders in and had a lot to do during friday, including a class with Spread Trade on Creating and managing Collar Trades. They did a very good job in presenting the strategy. Now I am off to California for some much need vacation.
UNG- exited my Nov 40p option for .35 with underlying @ 40.01. I am now unhedged on the stock. I will look to rehedge around the 43.50 level.
SBUX – exited 1/4 of my position @ .30. A very nice overnight double (before commission).
INTU – Exited 1/2 unit @ .40
HRB – Bought back 1 unit of Dec/Jan 20p @ .25.
I especially like Dec mini calendars going into Thanksgiving week. Lighter trade, and a 5 of the next 9 days the market is closed, and a sixth is shortened.

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