Damn. I went into cash yesterday and had a lot of ammo to deploy when the market opened. Unfortunately, I was out of town on business and wasn't sure if the meeting schedule would allow me to manage any positions. I thought OIH was the best looking short (break below 98.00) in the AM but was headed out of the hotel when it started breaking down so decided against initiating any positions that may ruin my day. I'm happy I avoided the bloodbath but not happy about all the missed opportunities. I hope some of you were able to make some decent trades today. In contrast to Monday, ATM/OTM PUTS in energy/commodities would have paid out very nicely.
With 2 days before expiration, there should be lots of more opportunities to trade the volatility with exceptional risk/reward using ATM/OTM options. My plan for tomorow...if the markets gap up, I'll fade it to last Friday's lows. On a gap lower, I'll use the opening range high to pick up Calls and catch a move back to the moving averages. Scanning last Friday's charts will be helpful to prepare for tomorrow.
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OE, still hanging with INTC 17's (sucker I am). Also riding out NCC, we'll see what opex has to offer nevermind the trend-DOWN the shute! FYI, No I didn"t get out of IR on the pop to 27 as it was too quick but still managed to exit @ 2.20 for a nice profit. So much expectation we spiral down that I have this sneaky suspicion we gap up and rally thru the day into Friday (yeah right).
aren't the expirations a little early this month? if so, why?
You've made so killer profits the past month. The INTC calls will be a speed bump to more gains. No gap up today but you may be right, we may rally tomorrow. I went back to cash and may start picking up longer-term swing positions. We were bound to retrace Monday's move and may have found a temporary double-bottom.
Anon, equity options expire the 3rd friday of every month. Here's a calendar from OptionsXpress:
http://www.optionsxpress.com/quotes/exp_cal.aspx
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