Thursday, May 2, 2013

Getting a Little More Short

I will admit it. I eliminated my a lot of my short risk, but I am know taking on some more risk to the upside. I like this upside movement because it just gave us traders a great level to short. Vol really did expand on that previous downside movement, but it was not yet clear whether it would contract or not. I believe vol as gotten very cheap as of now. So, I have reloaded on my VXX puts and I have am putting on bearish positions in the financials and in stocks like MSFT, BBRY, and BBY. I think GDX and SLV are for sure some good upside trades, so I have shorted some puts. I put on a covered call in NEM which I am just loving, but it is still good for more trades like that. I also am putting on a short put trade in JCP, just to keep my short risk low. For now, I think the whole market is a sale especially some of the blue chip stocks. As for a major market short, I like the TF short as the TF has a lot of downside velocity.

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