July 28, 2008

Market Review and Commentary for July 28, 2008

DISCLAIMER: These are trades I am doing and may not be right for
you. Use your own Due Diligence when making financial decisions of
your own choosing. This is NOT a recommendation of any security.
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I entered my ‘gamma scalping’ trade in NFLX and discovered that we couldn’t borrow shares to short the stock (which was necessary to get delta ‘neutral’). That happens sometimes. It’s real world trading. So we opted for our second choice AVP. Order entry on 10 straddles and a $40 profit the first day! Not very large, but it was easy money. Had the stock moved more we would have been able to generate a larger profit. Hopefully tomorrow we will have more movement.

WATCH THIS VIDEO IN THE TRAINING AREA

Also I rolled ‘down’ my SPY AUG 123/115 Puts to the SPY AUG 121/113 Puts for a $1.05 credit as the market dropped more than expected. This is part of my monthly income trade.

That’s all for now.

Trade With Confidence