Market Consolidation

It seems the market is consolidating and finding resistance around SPY 135 levels. The action in the market is really surprising and may push the market even taller if SPY 135 holds well. There are plenty of people caught up on the short side of the market and will be forced to rollover/ close their positions giving tailwind to a move higher. 

We should do well this week if the market closes on Friday at a level trading today. NFLX couldn't sustain above 127. NFLX 120 to downside and 127 to the upside are the levels to watch to protect this trade. Doubling a position doesn't bode well with my portfolio! Trade is still favorable at the close today.

There were enough opportunities to close SPY diagonal spread today, but RHT was not high enough to act on that potential trade. This is a balancing act. Portfolio will do fairly in spite of gains/losses from individual trades.

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Alert 41 - NFLX Calendar Spread

Netflix Calendar Spread for $1.80  

- FEB 10 '12 + FEB 17 '12 130 Call 

Comments: Doubled the position same as alert #40 at the market open today. This trade will be profitable if NFLX price settles between 120 to 135 on Feb 10, Friday. NFLX will have resistance at 133 and support at 120.

Feb 08, 2012

UXXX5008 BOT NFLX-COMB -@1.8

ALERT: UXXXXXXX BOT NFLX-COMB -@1.8 as of 2012-02-08 09:32:37

Interactive Brokers

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Alert 40 - Netflix Calendar Spread for $1.95

Netflix Calendar Spread for $1.95 

- FEB 10 '12 + FEB 17 '12 130 Call

Comments: Highly speculative position. This trade will be profitable if NFLX price settles between 125 to 135 on Feb 10, Friday. NFLX will have resistance at 133 and support at 120.

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Position #35 and #37 closed

Please see the track record for details. 

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Neutral Positions for Mild Pullback or Rally

Tech and Banks are leading the market. If banks continue to lead, market may go higher another 2-3%. I am expecting a mild pullback before another leg of a market rally. On an intra day basis, market is showing strong and hardly any pullback can sustain. Greece is the likely news for the next couple of days.

After closing GS puts for a nice gain, and adding a position on the long side, portfolio is evenly balanced. Two positions are in the money, and other two are at a loss. Overall, today's trade was an attempt to improve the likelihood of weekly gains after rolling-over loss making positions from the previous week. 

NFLX looks interesting speculative play. Banks are overbought, but aren't giving up gains. Large BAC calls are bought by speculators. There are several stocks on my watch list. Due to lack of technical support and resistances, my move will be conservative with the objective of preserving capital. 

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Alert 38 - RHT Vertical Spread for a debit of $0.60

Buy 17FEB2012 47 Call

Sell 17FEB2012 48 Call

Comments: The purpose is to balance the portfolio by adding a call to our open positons. 

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Alert 36 Closed at $3.55 Credit

Alert 36 Closed at $3.55 Credit

Comments: It may give more if market goes down, but let's book gains as our entire portfolio is on the short side. More than 50% of the portfolio is in cash now.

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