Thursday, January 17, 2013

Buy EBAY and IWM (sell puts)

Buy IWM via selling Mar 77 puts @88.1
I add to my IWM Russell 2000 delta. There are multiple chart support levels, 82, 80, 78, 76. A move back to 78 would negate the entire rally off the November 2012 lows. A pullback seems inevitable, especially because February can be a down month. However, I don't expect a big drop.

I also buy EBAY via selling Feb 50 puts @54.3.
Ebay is up nicely on earnings. Decent chart support at 50. Neither is a perfect trade. I still feel underinvested with January expiration coming this Friday, so want to put more money to work.

Long EBAY GPS IWM LEN LGF MON UNP XRT
Net long APC BA

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