Tuesday, May 28, 2013

Buy BA IWM (sell puts)

Buy IWM via selling Jul 85 puts @99.6
Chasing markets isn't my favorite move. However, these puts are way out, and I have capital to deploy. As has been my recent pattern the sold puts are further out than usual. This means a smaller premium, with a higher probability of success. Some of the premiums are so small the fishing analogy is down to eating the worms.

Later in the day, I sell some BA Jul 85 puts @100.8. Story is similar. Boeing in an uptrend. Chart support at 89 and 85.

I am tempted to sell puts on TLT the bond ETF, but the distortions in the bond market make it difficult to read. Same with gold. Central banks and other big players are distorting the markets and they aren't motivated the same way as other traders.

Long APC BA BRKB HOT IWM LGF NTAP PG SBUX
Net long SPY

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