Thursday, July 22, 2010

07/22 Daily Summary

One thing I’m grateful for Today: I did not sell my long Sep 1900 Call Yesterday, it looked tempting to dump it provided we closed with such a bearish candle formation... I opened the computer around 7 AM expecting to be ready to dump my long calls and manage the down-side, what a surprise to see we were already at my up-side adjustment and the contingent order had done its job at 1960. I kept watching and noticed the Vols were not letting off and this was forcing me to be more long deltas than I originally wanted, so I replaced the 1925 call for the 1950 with a vertical spread. This locked in some profits out of the 1925 and moved the position’s delta a bit more in line with what I wanted. Now it is a matter of watching the market Tomorrow and doing a cut and roll on my short 1825 calls. This up-side swing wouldn’t be this hard if the vols were going down with it, but with 3 fast moving days in a roll, the market makers are not letting the vols out of the contracts any time soon.

1 comment:

PBER57 said...

Thanks for the comments. Yup, I had to adjust yesterday and got the rest of my flys on my positions. I am leaning short on deltas and will wait to Friday to see if I hedge that by half. Also will have to put on calendar on the SPX, or XEO to hedge my vega.
I am watching the VIX closely now. I am looking for something to pop now with volatility. LOL. You should be over the hump now with Apple reporting and its link to the NDX. One really has to do Steve Chanin's daily fire drill in these days. Talk to ya later Pauly