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Robert Weinstein's picture
Robert Weinstein
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Joined: 2011-09-04 15:17

watching UNG for a long entry. Will sell covered calls and or short puts

Robert Weinstein's picture
Robert Weinstein
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Joined: 2011-09-04 15:17

Entered long UNG, watching AAPL for a long SPY at support, may enter long SPY or Short VXX and I just covered my April 18 put short with VXX with a net gain of .81

Robert Weinstein's picture
Robert Weinstein
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Joined: 2011-09-04 15:17

Watching Jaguar Mining (JAG) for a covered call long entry into the close

Robert Weinstein's picture
Robert Weinstein
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Joined: 2011-09-04 15:17

I ended up buying Jaguar Mining (JAG) into the close. I also sold Jaguar Mining covered calls to capture option premium. The IV is very high and having a somewhat hedged position while trying to catch this falling knife appears to be a wise choice in risk mitigation.

In pre-market trading I closed out some of my shares to leave only my hedged position. It was a very respectable gain of $0.31 or about 10%

I am "stuck" with my covered calls until the normal market opens up and options begin trading.

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Robert Weinstein
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Joined: 2011-09-04 15:17

I am still currently holding puts in VXX with a strike price of $18. The VXX has been playing around near $18 for the last week or so. Yesterday it dropped from over $19 and even traded in the money for a short period. This one is crazy for sure. The good part of it trading down in this range is I plan on rolling over on Friday. I don't intend to increase my exposure although it is relatively cheap in my opinion. I do plan on holding this type of trade until and if the prices move back up where I believe they should be.

I also continue to hold HPQ long as well as UNG the natural gas ETF via puts. I added to the position yesterday and it continues to be under pressure which I expect to continue. The good side to the pricing presuure is it makes the puts and options in general expensive so I will continue to be greedy while others are scarred. Nat Gas may stay in a low price for quite some time, but we are reaching the point of not seeing growth in capacity come online even though it's there to take. This tells me we are nearing the bottom. It doesn't say we are going to climb out, but that we are near the bottom.

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