Friday, August 31, 2012

Buy ALL, rebalance GLD & LGF (sell puts)

Sell LGF Oct 13 puts and Oct 14 puts @14.8
I rebalance back to long by selling two layers of puts after the rally in Lions Gate pushes my position to net short. I was short Sep strangles (15 calls, 14 puts). There is resistance at 15, but this rally looks like it has a shot at breaking that.

I also sell Oct 33 puts on Allstate Insurance with ALL @37.1. Allstate broke out from a chart base at 35 at the end of July on a strong earnings report. The base makes for layers of support at 35 and 34, so 33 seems like a relatively safe strike to sell puts.

The Fed news makes for a volatile day in gold, which is now up, after tumbling immediately on the event. This pushes my short strangle to net short.
/edit to add: later in day I sold GLD Oct 150 puts @163.4 to rebalance my gold position back to neutral. The bad part of the layers of short gold puts is that they eat up a lot of working capital in terms of buying power. The positive is that I still have some dry powder. My broker likes me today, with this being my fourth trade of the day, a recent record, if not an all time one.

Net long GLD LGF XRT

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