Today is the testing time for us. Not only, the employment numbers lifted the stock market, but also Zacks and Goldman Sach upgraded Eastman Chemical Company (EMN) to "Buy". This is not the first-time things are working against my wish. CMI calls closed early this week could have been fetching 300% gains today. Any ways let's be forward looking.
Rollover early in the morning helped to reduce the cost of SPY diagonal spread by $1.02. This may still be a profitable trade if market takes a breather next week. If the market continues to go, higher and SPY settles at 136, we will only have about 30% loss on this trade. At 11:58PM, SPY positions are at 20% loss.
The price action is similar to 2011 where everything was positive, and then we never touched those highs for entire 2011. I will stay cautious.
I may consider closing EMN position at a loss if stock doesn't show any weakness though stock is very overbought at this time.
We are still making huge gains for 2012.
Updates to the "Last 10 trades" section of the blog will be made shortly.
Better off selling CMI. You saw what happened with STX! Holding through earnings is gambling.
ReplyDeleteI took off my feet from the gas paddle after STX debacle. There were days when return were as high as 500% in some of my earlier moves. I am not too worried. It's normal in the options market.
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