Interesting Action

There was some interesting action in all the markets today. You could kind of see a tell a few days ago from a few of  the emerging markets ETF's moving down (I am bullish on FXI and EEM) and the movement down in small caps. The broad market (SPX and $DJI) has finally reacted to this with the SPX being down over 15 points, the $DJI being down more than 100 points, and the bonds being up. Again, I am long several covered calls because they tie up enough capital, so I can don't have to put to many longs on. Covered calls also are good for delta, and they have positive time decay. Covered calls are really really good when the markets are acting toppy (like now), and they are good for high vol stocks (CLF,BBRY, JCP). I have covered calls in JCP, CLF, and I closed one out in ZNGA when the stock went up over 15% on good news . Otherwise, I am short VXX 20 puts, long the 71/70 put spread in XRT, and short the 22/23 UNG call spread, among several other positions I have. Remember it is the strategy that matters not the direction.