Position Update

Currently running the portfolio at a gross leverage of 65%, and net short of 21%. A slightly bearish posture given the size of the rally. Somehow the skeptic in me is screaming SELL SELL.

Outright shorts in the portfolio now are

1) MAR -1.7%
2) PLL -9%
3) TIF -3.8%
4) CBU -6%


Long/Short

PNR/PLL
RE/PTP
HPQ/ORCL
UMPQ/CBU

Closing google time spread (Or trying)

Misread market closing time. Closed the Dec call at 4.2. Closing Jan call at 19.9 (hopefully).

New Trade (Software)

One of the rare software pairs trades on this site.

Long HPQ at 41.53
Short ORCL at 31.64

Some additional charts

Google Call Spread

Sell 12/23 Call at strike 600 --- $5.4
Buy 1/21 Call at strike 600 --- $20.9

Hypothetical Put/Call Time Spread

Another really short term trade idea. Opening up both a call time spread, and put time spread simultaneously. I'm using google as an example.

The strike is 600 for all four legs of this strategy. The bet is that google will trade between 600 and 610 between now and Thursday i.e. two days of trading. If that happens one could potentially make $750 in two days. Downside is if google rallies or drops 5% then you lose $1.5K. the info is based on one contract each.

Trade summary:

Ticker: GOOG
Instrument: Option
Type: Put
Strike: 600
Maturity: 2010-12-23
Buy/Sell: Sell
Price: 1.7
Implied Vol: 28%

Ticker: GOOG
Instrument: Option
Type: Put
Strike: 600
Maturity: 2011-1-21
Buy/Sell: Buy
Price: 16.6
Implied Vol: 28%


Ticker: GOOG
Instrument: Option
Type: Call
Strike: 600
Maturity: 2010-12-23
Buy/Sell: Sell
Price: 5.25
Implied Vol: 28%

Ticker: GOOG
Instrument: Option
Type: Put
Strike: 600
Maturity: 2011-1-21
Buy/Sell: Buy
Price: 20.6
Implied Vol: 28%

*Implied vol is an estimate. Could be +/- 2%.

Payoff chart:

Darn the google train!

Seems like is leaving without me :(... No worries. On a separate note outright short on NFLX seems dangerous at this time. With more than 20% of the float short, a short squeeze is a real possibility.

short CBU

Short CBU at 27.73

IB has an app for Droid!

Pretty nifty!

Short TIF

Ticker: TIF
Instrument: Option
Type: Put
Strike: 60
Maturity: 2011-05-21
Buy/Sell: Buy
Price: 3.45
Implied Vol: 34.5%

Close Out TIF Strangle

Good that we turned the short into strangle. TIF seems to be hitting bubble territory. Put goes worthless, Call closing at 4.85