I closed out my SPY Feb 111 buy-write position a little early today. It would have probably closed in the money, but I didn’t like the way the market was behaving for a position that was only a few tenths in the money. Sold SPY at 111.23 and bought back the calls at .36 for a net credit of 110.87. Overall profit was 2.44 …
My DIA dividend capture position was assigned last night as expected, for a net profit of $0.27 per share. Since my DIA position was called before the dividend was distributed I won’t actually get the dividend (which I am estimating to be $0.25), but my net profit is slightly more with considerably less risk than just buying DIA and holding to ex-dividend. The image …
I’m continuing with the hypothesis that there are a lot of similarities to the 2003/2004 market that might help predict the future action of the market. Clearly volatility is higher now than the 2003/2004 period, and the transition from upward trend line to a sideways market has been scarier–but these are scary times. Looking back at 2004, the market went into a slightly declining …
February VIX options expired today. The settlement price (ticker VRO/$VRO/^VRO) was 22.50. The VIX index opened at 22.25. With this settlement price I ended up losing .35 per call on my VIX spread. Things could have been much worse–I could have lost up to 2.85 with the spread. I certainly didn’t expect the VIX to stay up at the levels it …
In case you haven’t noticed, the market has moved off the nice trend line it was on the 2nd half of 2009 into what appears to be a sideways mode.
