1-855-RWT-0008
Prepared by the good people at Random Walk, LLC. (and Scott)
Great Morning
Closing Prices From Yesterday
Today’s Number(s)
Yesterday
The market opened down with the Dow at 16,924 and the SPX down 18.81 at 1,964 after protestors in Hong Kong demonstrated against China. Like Occupy Wall Street is appeared to be a non-event by the end of the day, but the markets still closed down on concerns of what the Chinese government may do.
The funny thing is that President Obama called the Chinese leaders and urged them to exercise prudence in handling the situation. Yet doesn’t he have the same thing going on in Ferguson, Mo?
TODAY
Getting ready to get long Russia Again with it down under $23. It seems to have a magnet at $25, so I might leg into another $2 wide butterfly like I did last month (for those who missed it). A reminder below:
We have a couple of decent size numbers out today, but they will pail in comparison to how the media reports (not the facts) the events unfolding in Hong Kong. I was watching as the media said 80,000 to 100,000 people were assembled. Yet the image had to be NO MORE than 5,000. So we will see. One of these days the media will grow a conscious and realize that their role is to REPORT the news – not create it.
POT is held each Wednesday night at 7:00pm eastern.
Contract the office at 1- 855 – RWT – 0008 for more details.
Yesterday
1 Day Put Condor
We legged out of the $10 put condor at a very good price of $6.30. This may be a lousy trade by the end of the day of the SPX cash closed between 1980 and 1975, but considering there is still today to go until expiration it was great.
Risk Reversal
We also put on a long risk reversal (long put spread, short call spread) $10 wide. This is $10K in potential profit or loss. It is a biggie. I know it deviates out $5k average price, but we should have on more hedges anyway. Also, it is my intention of cleaning this up should we open down today. I will do the reverse half as many times if we open lower. If filled on that (to be determined) I will be long a call unbalanced condor and a long $10 put spread 10 times and a short $10 put spread 5 times. Very bearish with very little risk in either direction.
This Week – Gamma Scalping
Remember: it is possible to sign up for ONE (1) if you are wanting a specific topic.
NEW:
I gleamed over the new and additional approach I am taking to POT when it comes to placing paper trade examples. This new approach will be two-fold.
ONE – I will be assigning a level of difficulty to each trade (from 1 to 5).
This is done so that the participants get get a better handle on the degree of difficulty each example is prior to it being placed.
TWO – This also ensures that students of any and all levels of sophistication will find examples that pertain to them. It will also help newer traders elevate their level of sophistication by pulling them up a level, instead of stagnating in one area.
This begins Wednesday.
Italy people please see our current greeks below.
What is great about this position is that despite the implied volatility in the SPX increasing the position’s PNL is barely moving because of the time decay offsetting things.
Too True To Be Funny
Everyone. Generals, Republicans and Democrats were demanding Obama stop ISIS. Obama then renames it ISIL and says no one warned him? I have to admit it is just stupid enough to be clever.
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Attorney Stuff
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Trading is almost as much fun as black jack in Vegas, but without all the annoying distractions of free drinks, Broadway shows, gorgeous people with low morals, and free buffets. It also has about the same odds of success, so when you lose all your money you wont have to walk past a smiling pit boss. Even Bruce Wayne lost everything with options in The Dark Knight Rises, and Superman keeps his day job at the Daily Planet newspaper.
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