Opportunity to setup some cheap long trades
Posted on June 8th, 2009 by
Mojo
Looks like we are heading into a bit of a downdraft this morning. It is reasonably expected with the big run last week, decreasing summer volume and approaching whole number (950 and 8,800) overhead resistance.
I still think we are long term bullish so I’m going to use this short pullback to close out some bearish trades for profit and (more importantly) to setup some bullish trades on the cheap.
Like most summers I will be reducing my size, trading more delta neutral, and being more careful of news events since the lower volume market seems to react more dramatically. No since reunioning a good vacation with a poor trade!
Mojo
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Mojo
My topside is too close so I will be either moving it up or buying additional calls if needed.
Mojo