July 30, 2008

Market Review and Commentary for July 30, 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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A profit of approx $2,440 today on AVP plus the profit of $250 from yesterday put our net profit at $2,683. Our deltas moved all the way to +583 but we could only hedge by shorting another 500 shares as we already were 500 shares short. The majority of our profits came from our long Aug 35 strike call on AVP – I looked at the chart and I sold them at 9.60 – the highest trade of the day! Some are lucky, some are smart – today I got lucky.

So I decided to close the trade but keep the almost worthless ‘put’ (.02 cents). Selling it would cost us $15 in commissions and leave use with $5 so we might as well keep it… if AVP moves and reverses we will potentially have another way to profit from the long put.

I started looking for another stock to replace this one in my portfolio, but was unsuccessful. I’ll keep looking tomorrow (I got a couple of ideas from watching CNBC’s Fast Money show).

ADBE did not move much but we were able to ‘scalp’ $100 in profits today. Hopefully it will move a little more tomorrow as our straddle will continue to deteriorate so it’s important it moves- up or down we don’t care.

Here’s Day 3 Gamma Trading Update:

WATCH THIS VIDEO

That’s all for now.

Trade With Confidence