Put options on ProShares Ultra Russell 2000 (UWM) have become hard to resist for me lately. I understand after such a big run up the risks are higher of a bigger correction, but the January 2012 options have extreme pessimism built into them. Before today I was already short one contract at the January 2012…
SPX Chart – January 28, 2011
I charted the S&P 500 on Friday, January 28, 2011 after it closed for the week at 1,276.34.
Added Exposure on the Dip – SSO & EEM
I’ve been waiting for a good solid down day in the markets to add some extra exposure and used today’s dip to increase my holdings some. While I’m still underinvested overall, my use of some ultra ETFs makes up the difference for the most part in setting me up for a rest of the year…
Sold More UWM LEAPS
After posting the Russell 2000 chart this past weekend I thought this week would start off with more of a decline, but so far the 50 day moving average hasn’t even been touched yet and small caps have moved higher again, albeit not to last week’s highs so far. Sticking with my theme of not wanting to…
Russell 2000 Chart – Broken Trend Line
I charted the Russell 2000 ($RUT) after it closed on Friday, January 21, 2011 at 773.18. The small cap index has been on an outstanding run since the end of the summer last year, but this past week issued a stern reminder that it’s not going to last forever. With a 4.26% decline over the…
Options Expiration – January 2011
I have 10 options expiring today – seven puts and three calls. All 10 will finish above their strikes today which means I won’t be assigned any of the puts and all three covered calls will force the sale of my shares at the strike prices. Here’s the breakdown on each one: CSX – 1 naked put at…
Sold New SSO LEAPS Far OTM
Although I’m starting to get the feeling that we might be at the cusp of a new downturn I decided not to wait and added a little more exposure in my TD Ameritrade (AMTD) account that’s supposed to be dedicated to bonds. While SSO was trading at $49.20 I sold two SSO January 2012 $40 naked…
Option Assignment – CVS
I opened my email to find (with little surprise) that my CVS January 31 covered calls were assigned as of the close of trading yesterday afternoon. I say it wasn’t a surprise because today is the ex-dividend date and the calls were more than $4.00 in the money with only a few days of time…
Dow Jones Chart – January 14, 2011
I charted the Dow Jones Industrial Average ($DJIA, $INDU, $DJI) after it closed its second week of 2011 at 11,787.38.