tirsdag 28. juni 2011

Trading recap Monday 27th of June

The S&P500 put in a nice rally Monday to get above the key 1277 resistance, which forced me to hedge som delta on the 1270 short calls I have on for expiration 30 June. I also bot back the 1300 calls that I sold last week for a gain of 610 USD, pretty decent. Why I bot them back? Because they were trading for 0.90 per contract = 45 USD per contract. I see no point keeping them on in case we got a rally to make another 45 USD per contract. That would be bad risk management in my opinion. I also sold 2 contracts of the 1280 calls for expiration 30 June, receiving 8 points per contract = 800. My view is that unless we rally above 1294, the next leg is down, therefore I want to be short delta to express a bearish bias that I hedge if I am wrong of course. Since the market is so jumpy at the moment it feels better to have the options structure than a pure short futures position. As this options gives me a bit more flexibility.
Otherwise I did one crude long, buying in below 90 USD level that has been support a few times before, made 35 cents on that long = 175 USD.
I will close out the Euro positions from Friday on Tuesday.

The entire trading log can be found here

Good luck

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