I'm
looking for volatility to pick up so plan to trade cautiously, with big reserve. This week I initiated, four election ratio spread trades. These back ratios target
a 5% up move in IWM, or 10% down move in SPY, and a 10% up move in
GLD, 7% up in TLT. These are pilot positions, so I am add, subtract, perhaps even
reverse as time goes on. For easy tracking: IWM ~ 123, SPY ~ 217, GLD ~126, TLT ~138.
Here
are the trades (c = calls, p = puts, all are third week expiration
unless noted, sell means sell-to-open, cover means buy-to-close,
number is price per contract):
Wed Sell VRX Sep 26 p 18 rebalance as Valeant rallies
Sell
WYNN Sep 75 p 21
Election trades. I am targeting a 5% up move in IWM, or 10%
downside in SPY. Also a 10% up move in GLD. Initial outlay is small
for IWM, GLD. I get a small credit for SPY.
IWM
ratio: Buy IWM Nov 125 c 289
Sell
2x IWM Nov 130 c 98 each
SPY
ratio: Buy SPY Nov 205 p 249
Sell
2x SPY Nov 195 p 135.5 each
GLD
ratio: Buy GLD Dec 135 c 209
Sell
2x GLD Dec 145 c 82 each
Sell
BRKB Sep 152.5 c 36
Sell
GDX Oct 22 p 24
Thu TLT ratio: Buy TLT Nov 145 c 122
Sell 2x TLT Nov 150 c 50 each
Fri
Roll BRKB: Cover BRKB AugW4 147 c 43 (40% profit)
Sell
BRKB Sep 148 c 143
Sell
ADSK Oct 57.5 p 29
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