Plan & Trades for Jul 1, 2009
Going forward, all the trades for a given day will be posted in the comments section for the “Plan & Trades” post for that date. I will stop making a separate post for individual trade. It just unnecessarily increases the number of posts making it a huge inconvenience to go through the blog.
At the end of the day, I will summarize all the trades and edit the “Plan & Trades” post to include the trades here.
Plan for Jul 1, 2009: Ahead of the long weekend, I expect lighter trading activity, and it usually results in an upward bias. Additionally, all the bears and lots of bulls are looking for a quick downside here given that Q2 is over AND the possibly non-existent window dressing is over as well.
I expect us to chop around in the range between ES 908.5 and 918 with an upward bias. If we visit the lower end of the range, I will start to scale into longs. If we visit the upper end of the range and breach it, I will look to add shorts around ES 926, ES 930 and so on. There is a good chance we might create a higher high than today.
I will use Jul options mixed with Aug options till Thursday. I do not intend to hold onto any un-hedged Jul options beyond Thursday mid-day. If there is a position that I want to hold over the weekend, very likely I will roll over into August options. The goal here is to eliminate as much of the 3-day theta burn as possible.
Trades for Jul 1, 2009
- SELL FSLR Jul $160 Calls @ $8.80
- BUY CME Jul $330 Calls @ $3.30
- BUY OIH Jul $100 Puts @ $3.30
- BUY USO Jul $39 Puts @ $1.35
- SELL CME Jul $340 Calls @ $2.25 (hedging the Jul $330 Calls esp ahead of long weekend)
- BOT a bunch of puts on GDX, GLD, PCLN, AAPL – details later in the day. Got to go now.
