Thursday, January 10, 2008

A mixed day

The Qs went on hold until 12:00 when Ben mumbled something about doing whatever was necessary to keep the economy afloat. Figuring that there would at least be the impression of good news coming, I picked up some long calls at 11:00 and was ready for the blastoff. I was looking for a short term exhaustion top at 12:20 to exit and had my finger on the button watching 1 minute bars, but by the time I concluded the top was made (elapsed time: 90 seconds) the calls had already retraced .03 before I could get out. Just not as fast as I used to be. I did nothing for the next few hours until 14:00 and with the Qs coming off the PP pivot once again, I sold the near OTM puts. Volume was inconclusive going into the close and there is still an obvious bias towards the sell side at this point. My goal is to focus on premium decay rather than directional moves for the next few days.

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