Spread Adjustments – 3/3/11

Thursday Position Strategy – 3/2/11

ICE trends with a high correlation to CME so it would likely be a good hedge for CME. Tomorrow I will continue to lighten up my hedges into profit and start to move into a more bullish position in CME. To hedge I’ll put on an ICE PUT spread and if there is no hedge then at least I can collect premium on the short PUT.

 

 

 

 

 

 

 

 

 
In the event of the last case I would buy back the short leg of the ICE PUT spread and further lighten up the hedge still on CME. I would continue to do this until I change my mind or I’m repeatedly proven wrong.

Spread Adjustment – 3/1/11

Wednesday Trades

Wednesday Trades

 

Monday Trades

IN
AIG – AUG 48 CALLS @ 2.59
BAC – AUG 16 CALLS @ 0.87
CME (hedge) – MAR 280 PUTS @ 3.40
DG – MAY 30 CALLS @ 0.90
EXPE (added) – APR 28 CALLS @ 0.45
FFIV (hedge) – APR 105 PUTS @ 2.25
MCD (added) – MAR 75 CALLS @ 0.67

OUT (-1.545)
AMZN (covered short) – APR 210 CALLS @ 0.73 (+0.10)
CME (part) – MAR 320 CALLS @ 3.30 (-2.833)
PG (part) – APR 62.5 CALLS @ 2.73 (+1.02)
PG (part) – APR 67.5 CALLS @ 0.428 (+0.258)
ROVI (part) – MAR 65 CALLS @ 3.36 (+0.91)
VIX (part) – MAR 20 CALLS @ 1.30 (-1.00)

SCALP (-0.091)
FFIV (in) – MAR 145 CALLS @ 1.521
FFIV (in short) – MAR 150 CALLS @ 1.05
FFIV (out part) – MAR 145 CALLS @ 1.25 (-0.271)
ROVI (in) – MAR 70 CALLS @ 1.52
ROVI (out part) – MAR 70 CALLS @ 1.70 (+0.18)

Thursday Trades

IN
AMZN – APR 205 CALLS @ 1.05
AMZN – MAR 145 PUTS @ 0.65
CBOE – SEP 28 CALLS @ 0.80
PG – APR 62.5 CALLS @ 1.85
CBOEbutterfly MAR 22/24/26 @ 0.71
EXPE – APR 28 CALLS @ 0.50
FCXshort MAY 50 PUT @ 2.63
UUPshort SEP 24 CALLS @ 0.28

OUT (+2.667)
DBO – MAR 30 CALLS @ 0.60 (-0.15)
MCD (part) – MAR 75 CALLS @ 0.90 (+0.15)
ROVI (part) – MAR 65 CALLS @ 2.65 (+0.167)
ICE (covered short) – MAR 125 CALLS @ 2.15 (+0.28)
ICEvertical MAR 120/125 CALLS @ 1.82 (-0.086)

HEDGE
SDS – MAR 23 CALLS @ 0.59

OTHER
Reduced size of CME vertical and converted part to 300/310/320 butterfly then took part profit on 330 short leg of 320/330 vertical

CME (OUT part) – vertical MAR 320/330 CALLS @ 1.62 (-0.045)
1) CME (IN) – vertical MAR 300/310 CALLS @ 4.05
2) CME (IN) – short MAR 310 CALLS @ 6.20
3) CME (OUT covered part short) – MAR 330 CALLS @ 2.05 (+2.35)

orignal position: 320 + (320/330 vertical) = 2*+320 & -330
1: 300/310 vertical = +300 & -310
2: -310
3: +330

Two positions: 320/330 ratio vertical (net long) & 300/310/320 butterfly

Tuesday Trades

Scalp
GS: +0.11

IN
CMEShort MAR 330 CALLS @ 5.20 (hedge)
FRXShort MAR 34 CALLS @ 0.50 (hedge)
ROVIShort MAR 70 CALLS @ 1.15 (hedge)

OUT
FRX (1/3): MAR 33 CALLS +0.20
ICE (1/6): MAR 120 CALLS +1.414
VIX: FEB 17 PUTS +0.225

Monday Trades

IN
CME – Long vertical MAR 320/MAR 330 @ 6.25 & 3.55
DBO – Long ratio calendar strangle FEB 28 PUT/MAR 30 CALL @ 0.30 & 0.75
GLD – Long vertical MAR 131/MAR 132 @ 2.60 & 2.13; with downside PUT protection: MAR 129 @ 2.79
ICE – Ratio vertical MAR 120/MAR 125 @ 4.34 & 2.43
ROVI – Added MAR 65 CALLS @ 2.42
VIX – Long calendar strangle FEB 17 PUT/MAR 20 CALL @ 2.80

Friday Trades

During large market drops money goes to “fear” assets such as gold, USD, and oil

IN
DBO – ratio long calendar strangle (1/5) to the long side
GLD – long strangle ( 1/1)
SDS – long. Inversely tracks the SPX. Holding until market strength returns.
UUP – when the public takes money out of the market they put it into what they consider safer assets such as cash
VIX – I anticipate the VIX (fear index that calculates volatility in the market) will continue to go up into next week
CME – I found a good bargain on one of my favorite stocks during the dip so I added to the position
ROVI – This is a stock I have been watching for a good entry for a long time and today it hit my buy level
FRX – This is another stock I have been waiting to enter

OUT
TUP – held very poor strength breaking below support levels so I decided to take the loss and move on
CME – Took profit on CME PUT protection I put on recently