Saturday, October 19, 2013
Just Flipped Back Short
I just flipped my positions from long to short. I covered most of my longs on the way up in the last few, and I have added some short to replace. The reason for this is the Vix, so hopefully we can get a quick down move (vix pop), and I can roll over back to long. The largest short position (delta wise) is in IWM and I will close my iron condor. My major long is in DIA because it is part of my DIA-SPY long pairs trade. I also rolled over to short deltas in Gold (GLD), but I sold an iron condor in GDX because of the vol opportunities. However, there is not a lot of opportunity to be short volatility because VIX is low, so a lot of other stocks do not have high implied volatility. Again, there are a few stocks or indices for short premium, but there is not a lot of stuff worth getting aggressive in. For now, this is debit spread time, and directional stocks. The lower volatility gets the more directional plays are because there is not a lot of opportunity for volatility to get crushed. However, I am staying with my positions, avoiding earnings stocks (binary event risk), and I will not be getting overly aggressive. Staying small is key right now, and get as much theta as you can. However, do not go overboard. Remember volatility is still low.
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