1-855-RWT-0008
Prepared by the good people at Random Walk, LLC. (and Scott)
Great Morning
Closing Prices From Yesterday
Today’s Number(s)
NO NUMBERS TODAY
Yesterday and Today
Yesterday
Magic….at least for anyone long deltas and short premium. LOL LOL LOL LOL LOL
The classic “V” bounce stated out and grew throughout the day with the Dow and SPX changing all the bears minds on TV. One of these days, though, eve the bears are going to start falling for the “automatic bounce” after a 3-4% drop, and the bottom will fall out. Not this time, though.
TODAY
More up. What can I say?
18 months ago I stated when the Dow fell under 15,000 “we are going to spike a little above 17,000, perhaps 17,300 or 17,400 and fall”. Well, we got to 17,350 and fell, but just a small amount. The last fall we had was NOTHING. It was tiny, but scared people when you get 2 days of negative 200 points or more. Again, you have seen NOTHING. I think I underestimated the climb and underestimated the Fed’s determination to pass the crash potato to the next chairman.
I said yesterday to not worry about a crash over Ebola or ISIS as those do NOT kill bull markets. Keep that in mind as the media is going to try its best to have a reporter claiming everyone in this country is going to have Ebola. This Ebola crap is not going away soon. Just stay away from exchanging body fluids with the homeless and you will be safe (see headline in WTF area below). What kills bull markets is weakening economics and raising interest rates.
We also have a mid-term election in a few weeks that is shaping up so bad that even Democrats are saying that they have never heard of, met, or agreed with the President. When on takes no responsibility for ANYTHING, it eventually comes back to haunt him, and after 6 yeas of the blame game people are fed up with Obama’s excuses. So we are finally going to get the “Change you can believe in”…..all new politicians. That should buoy the markets a little.
I have no idea how the “real crash/correction” is going to occur, but I suspect it will be either 200 to 300 points a day for weeks, or it will be 1,000 point days back to back. That is my guess. But just another little scare occurred like the 14 or 15 we have already had in the past 3 years. More up and up.
POT is held each Wednesday night at 7:00pm eastern.
Contract the office at 1- 855 – RWT – 0008 for more details.
Yesterday
Huge day yesterday. Between being short volatility (which came in 1.61 points), short a weekly ITM put spread and long 450 deltas, it was probably the biggest day of the year for POT other than the day we fell in the last drop a month ago.
Gamma Scalping This Wednesday, which was put off due to necessity, from last week.
Below
Last week we saw how a risk reversal that was hedged twice can be turned into a RANDOM WALKER. Didn’t see it coming, did you? LOL
This began last night.
Italy people please see our current greeks below.
We have on essentially two short positions now. We are short an Iron Butterfly sold on small premium levels and a Iron Cockroach sold at 17% levels on Thursday. He he….
We are golden.
Too True To Be Funny
The media is a peach. Now they are digging up homeless to keep the Ebola panic going? As long as none of my readers exchanged bodily fluids with a homeless man this week, I don’t care. I don’t see a lot of homeless people at the airport chartering planes to go to Liberia for holiday.
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Attorney Stuff
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Trading is almost as much fun as black jack in Vegas, but without all the annoying distractions of free drinks, Broadway shows, gorgeous people with low morals, and free buffets. It also has about the same odds of success, so when you lose all your money you wont have to walk past a smiling pit boss. Even Bruce Wayne lost everything with options in The Dark Knight Rises, and Superman keeps his day job at the Daily Planet newspaper.
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