Fun Times! 

Closing Prices From Yesterday 

Today’s Number(s) = NONE 

THIS WEEK’S EARNINGS

Are almost as numerous as last week, but the names are far from as important.

Yesterday and Today

Yesterday

A weird day in the markets. The major indexes looked as if they were going to sell off for a second day when late in the days news came that Obama was going to speak. No topic was leaked so rumors started to fly that the problems in the Ukraine were going to get resolved, and that was what Obama was going to be discussing.

The rumors turned out to be a giant fluctuation sound when the first words out of the President were pertaining to Congress. Instead of LEADING (for good or bad) it was another long winded speech on

how Congress could not get along – blame, blah, blah, blame, blah……George Bush…..blah. Getting OLD, like my complaining about him.

It was just that my whole life growing up was one where if the president was going to make an unannounced speech, the speech of of importance. We were going to be attacking someone, a plane went down, etc. Not complaints about the check-and-balance system our founding fathers created.

So when the markets realized Obama was more intent on looking good at others belittlement, the markets sold back off. Call me partisan (though I am not) – that is what happened. Trust me…I am an American that wants nothing but the best for this country. We just are not getting it. We are too good to be dealing with 3^rd grade name calling. And I am frustrated that we have a President that is too obtuse to realize if you call people names they tend not to want to work with you. The markets must have felt the same way.

TODAY

UP>>>>>

Now that Congress if on vacation and Obama got his frustration off his chest there should be no news from those clowns. Remember one important FACT. Most of the market’s gains over the long run occur when Congress is on vacation.

There will be a lot of reports (negative) about ISIS controlling Iraq’s largest damn, oil fields, etc. It doesn’t matter because we will not do anything but hand the key and weapons to ISIS. So this news is not going to do anything to retard the gains from here.

POT is held each Wednesday night at 7:00pm eastern.

We did it!

Last week was a great example how creating a long position with long deltas could be over hedged and make money. We stuck with our goal of having 200 long deltas in the SPX (equivalent). The SPX fell 45 points, which should result in 9,000 loss, but we had a huge gain instead.

The “Vertical Time Spreads” saved the day (as shown). They could have even made more had I not been conservative. On Friday we reversed the whole position. We went from long vega and short theta to short vega and long theta. 20 contracts of the SPX iron condors were sold. Put spreads were sold to close, and more sold to open.

Viola…

And though I didn’t do a great job at managing things, it still was a huge success in illustrating how the hedges work.

We never did do the NDX-SPX example as I was too busy, but I will get around to it. More in POT this Wednesday Night!!!

Let’s have more fun this week.

Too True To Be Funny

Attorney Stuff

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