This was one of the strangest trading weeks I can remember. I heard it described as a week with two Mondays and two Fridays. Regardless of what it’s called, it was another positive week for me. The S&P 500 finished down 0.54% for the week, while I finished up 1.1%.
I opened 3 new positions: Long: $JBLU 5.39; Short: $QID Aug 33 Calls and $VXX Aug 15 Aug calls. I rolled my short $PCX Jul 2 Calls to Aug to get some more duration. The $PCX position is quite underwater and dead to me. I’m in “clean up mode” in the position, selling what options I can to further reduce my cost basis.
I’m still very heavy cash (for me) with a 17% cash position. I’ll be looking to deploy some of that cash early next week. I’m neither very bullish or bearish short term. Just looking for more some upside and possible places to lay out some shorts. Longer term I’m looking for a trading range until the market can figure out the US Presidential election. When that happens, I’m expecting a rallye [sic] that will continue at least through the election, and possibly into the Inauguration. To be clear, I’m expecting a rally regardless of who the market decides will win the election. Typically the reduction of uncertainty will allow prices to be marked up.
Stay cool. Be safe.