XIV continues to tread water, supported by weak contango. Initial position is 200 shares. Will scale in lower. Waiting for the drop. With the cumulative advance/decline line making new highs and the NDX following suit, I suspect divergences in SPX and RUT (not making new highs) will weigh in the very near term. … Read More XIV September
The November crude put spread looks safe. For now. This is an initial tranche. Apols for the messy crude oil futures chart.
RUT is positioned like the SPX spreads. Would benefit from a retracement, but I have a conditional order in to take off the calls in order to lock in upside profit (and greatly reduce risk). Just need a nice bump in volatility. RVX is trading at 15s, testing 16s.
Minimal risk on the upside. Ready for a retracement. Or, a correction. Will probably need to adjust this on the next volatility bump.
Many adjustments. Still a bit caught. An Irma-induced retracement may help, as unpleasant as the event itself is.
With two days to go before expiration, the euro spread is well positioned. Unfortunately, someone is spiking the 1.235 put, so I am not seeing the full benefit of theta. If I take to expiration, and I intend to do so, I will be assigned the OTM futures and will need to either immediately close… Read More Euro spread
It’s a bit late in coming, but I’ve been busy. July’s SPX trade was profitable, but not as hoped. The play-by-play is described in the image at the link below. In this post, I wanted to put down some thoughts about the model in general and why the immediate outlook for performance is not very… Read More SPX fly, July 2017