Friday, July 19, 2013

12-2 for July, grade C

Twelve winners, two losers for the July option cycle. One loser was Boeing, the other was part of a SPY backratio. The Boeing loss was the worst of the year, and why the grade is so low. 

Some may ask what I learned from the BA loss. It happens, sometimes you enter a trade and a few hours later there is a fire on a plane. A person could never time that if they wanted to. I closed the riskiest part of the position, and even though, BA rallied from there, it was a sound move. A person either uses stops or doesn't.

I have concentrated open positions for August, with APC BA LGF having multiple layers of short puts. Many of the other puts are now so far out of the money, the delta is near zero, meaning I get little benefit from any up moves.

My minor foray into gold is working out so far. My short puts in GDX got off to a rough start, but are now moving in my favor. I still think lower lows are possible. 

I am still shying away from bonds. It gets too hard when the Fed can pull its puppet strings or relax them at any time. Some may say that about the other markets, but with bonds, the Fed has openly discussed both sides of the trade, intervention, tapering, and perhaps eventual unwinding.

Net long APC LGF SPY
Net neutral BA

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