Prior Weekly Wrap-Up - February Expiration Day Special!
I didn’t get to do a wrap-up last week so we have a lot of trades to go over and, with expiration looming and the Fed tightening, I thought it would be good to just get the list out on Friday so we can adjust our rolls to March where neccessary (in bold under appropriate positions). In our Feb 7th Wrap-Up, I was gung-ho bullish saying " It’s Only a 55-Point Drop You Wimps! " and we had  been BUYBUYBUYing at the bottom all week, especially Wed-Fri as the market spiked through our projected support at Dow 10,000 but not enough to change our minds as we bottom-fished on AAPL (2 trades) , ABX, ACOR, AKAM, AMED, BRK/B (2) , C, CCJ (3) , CSCO, DELL, FXI, GE,  GOOG, IBM, LLY, LOW, NLY, TBT (5 times!), TM (3) , TNA, USO (yep, we wen long oil) and UYG.  To say we were weigting bullish by that Monday was an understatement as we has finished the weekend in a bullish stance and were relying on our disaster hedges to protect us .  Those disaster hedges are an interesting set to look at, especially now that we’ve recovered 400 points : DXD July $27/33 bull call spread at $2.50, now $2 - down 20% We can roll the $27 calls to the $25 calls for $5 to widen the spread and drop our b/e from $29.50 to $28.50 EDZ July $3/8 bull call spread at $2.10, now $1.60 - down 23% EDZ Apr $10 calls sold for .70, now .15 - up 78% (pair trade) SDS 2011 $36/40 bull call spread at $1.30, now $1 - down 18% We can roll the $36 calls to the $33 calls for $1.10 TBT Jan $35/45 bull call spread at $6.30, now $7.40 - up 17% TBT March $50s sold for .65, now $1.22 - down 87% (pair trade) This is what is great about disaster hedges.  The potential upside on these spreads, if the market headed south was up about 100% on the 4 trades so a commitment of 5% of your portfolio to each one (20%) would give you back 40% of your portfolio in cash if the markets tanked.  Already, after 2 weeks, we have the markets heading in the opposite direction and what is the cost?  Not even 20% of the 20% you may have allocated, a 4% insurance premium while the 80% of the portfolio that is bullish caught a huge rally up and this insurance is still good through July!  Monday (2/8) Market Movement I pointed out how much chart people love…
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