Three small winners, one big loser for the February option cycle gets me to about break even for trading results for this cycle. The loser was the bearish vertical put spread on SPY. The winners were short puts on GDX, GLD, TBT. The gold puts were underwater a month ago, so I am relieved that they came in safe. However, when a market rallies, traders often wish they were more aggressively positioned.
Going forward I am short puts on SPY, TBT.
For some traders there is angst about the stock market. Stock market bears can not even get one day or one hour of sustained down movement. During the last 30% increase, there have only been 13 down days of 1% or more. That is unprecedented, never has a rally of that magnitude been punctuated by so few down days. Again, some point to the high frequency trading phenomenon, some point to Bernanke. Whatever the case, the bulls have been making money and bears have been losing.
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