Well I had a bad feeling about the market today and when you think it's out to get you it probably is. The F breached 3900 comfortably and then took out the pivot R1- the US meanwhile was up and the trin ( will explain another time) was at 0.43 which is monster bullish. So, I am thinking:
1. Another trillion dumped into the market 2. Bad news has been shrugged off 3. A key level has been breached and 4. the obvious target is 4000.
So- I rolled my short 3800 calls one for one into April 4000 calls. I was able to set a limit of zero as the trade is recognized as a diagonal calendar. So I bought at 105.5 and sold at 105.5, giving up a month's time premium and hoping we have seen off the highs for now. I can have an expensive lie in for tomorrow's expiry, so it's not all doom and gloom. Trouble is I have been here before- chasing the flippin market as it goes to the moon and each month you think it's still too high to take any downside risk, so you make little profit.
On a sidenote- I was very risk averse this morning and closed out short puts -paying 9.5, but I had sold them 2 days ago for 20.5.
I figured I could dip in again if the market tanked, as it usually rises for the expiry.
Anyway I was played for a fool today, and put myself in the position of being a forced seller and forced buyer.
That is not what a good terrapin does.
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Sold my APR DOW 8200 Call today for 41 (bought at 14) twitchy it's on the 50% fib and seems stuck there. Will post chart on TMF when I'm back out of the dungeon.
ReplyDeleteawb'
Excellent trade- 300% gain, now if only fund managers were as active and smart, we would only have to pick a fund.
ReplyDeleteIt is vital that traders talk and circumvent the phony financial media- I know one options trader who told me he totally ignore the rule book, and does very well. May we live long and prosper