Market Curiosity: Exploring Markets And Systems

January 24, 2011

Sold TBT puts +13%, now long calls too -28%

Filed under: +06 to +25%, -25 to -49%, Long Calls, Short Puts — Tags: , — Jeff Fitzmyers @ 8:15 am

Bought Sold Feb 38 puts for $1.05.
+ Fundamentals are crazy poor.
+ Muni bonds are doing very poorly and yet money is not flowing from Muni’s to bonds.
+ Monthly and weekly CCI’s are trending up.
– Daily CCI is high.
+ A strong start today was reversed.
+ In a triangle.
+ 34 EMA and 170 EMA are rising.
+ Appears price will close above the 5 EMA.

Jan 19th: Bought Mar 40 calls yesterday for $1.80.
Jan 24: Covered short puts at $0.91 +13%. Exit plan for calls is close at -50% or if price closes above 121.5. Sold the calls for $1.29, -28%.
Lesson: When entries are not great, after a 20% drawdown consider selling half if prices get near break even or better. In this case price was up 20% — that’s a change of 40%.

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