One can only think that the silence is frustration sweeping over the crowd. Why is it that longs are constantly forced to participate from higher prices? That’s what feels most comfortable right? Well, longs are now thinking “fuck you, I won’t pay.” They all learned their lessons buying the gaps higher over the last two weeks. My best guess is that most are thinking “well, this is that same gap I’ve bought so eagerly recently, and then in turn been fed spoonfuls of losses. I’ll insert my better judgement and pass on this action and wait for a move lower to buy.”
This gap is different.
Due to the collective silence I am enamored with here, I did the following today…
Added second blocks to the LT positions I picked up on Grey Monday (8/24 – $ZG, $FEYE, $SPLK). All except $LULU. I will add to that after earnings.
I bought more $IL and also picked up shares of $BTE and $ADXS.
I bought Sep 113 calls in $AAPL, and am currently looking at 3 month calls in $SINA, $DDD, $GOGO and $ZG. In each of these, I plan to sell short dated premium against them, looking to get my basis down to zero over the next several weeks.
More later,
OA
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Bought $XONE too.
wth. all the PMs are rocketing higher today except for gold. weird.
The metals with the fundamentals, yep.
OA – so you’re buying today instead of maybe waiting for a pullback tomorrow? I bought very little this am and now find it hard to pull the trigger on anything given how fast the move has been today
Been buying all morning. Do you read my blog?
yep. read the above post.
So your comment about waiting for a pullback is perfect.
My fear fits pretty much right in line with “Well, longs are now thinking “fuck you, I won’t pay.” They all learned their lessons buying the gaps higher over the last two weeks. My best guess is that most are thinking “well, this is that same gap I’ve bought so eagerly recently, and then in turn been fed spoonfuls of losses. I’ll insert my better judgement and pass on this action and wait for a move lower to buy.”
I’ve been keeping tabs on peoples comments, emails, etc. I know that’s what everyone is thinking today….which is why I started buying at the open.
Out of CYBR calls and VXX puts — rolled into FIT Sept 40’s.
I started a position in BABA today. Half off is as good a place to start as any.
geez. what a shit show
Utter shitshow. Today felt very pukey though, willing to bet a short term bottom is in (3-6 months)
Stop at 55.
OA – Agree. I bought a little at the open but not nearly enough. and now just tepid to put more into it after the big run-up. definitely a psychological mind-f#ck this market is doing to us retail players.
Just realize that your raw emotion is the opposite of what you should be doing. Kill it.
haha. so true. maybe take a stab at some weekly SPY calls then.
AMRN good long term setup but short term location could be better.
Good luck Jeff. I didn’t do too much. I did end up buying back into AAPL / GILD after realizing my panicky sells.
Judging by volume only the very brave like Jeff are buying, no sellers here
Volume contracts at the tip of these ranges. Now everyone just stops guessing and waits to chase.
Would enjoy your rationale about buying 3 months worth of time given that volatility risk premium might be the highest now? Won’t that drain away some premium as volatility normalizes?
“In each of these, I plan to sell short dated premium against them, looking to get my basis down to zero over the next several weeks.”
jacked rabbit- I think OA means he will sell calls that expire earlier, the proceeds tending to offset the time premium on the longer dated calls to be bought. Selling volatility. Less risk on the long dated calls if underlying prices decline.
Thanks OA and mx. Just wondering how it was going to work when the premiums he was selling were gonna be lower than what he bought at because volatility is so high now. Watching and learning…
Well, that’s where three months of price appreciation comes into play, yes?
Your mother was a hamster and your father smelt of elderberries!
Ni
And Janet must now cut down the Chinese Yuan with… a herring!?
Your mother was a murlock.
OA, thoughts on vol instruments here? VXX, UVXY, XIV?
I’d buy $XIV here for a move back to the mid thirties.
Thanks. I’m positioned for that. Helpful to see my views reinforced. And thanks for help, as always.
🙂
Blue, you going to the IBC conference?
I am only going to go if The Fly pays for me to come. The bastard did not even give me a coffee mug. The ragin cajin sent me an IBC mug. The Fly is an angry cheap bastard.
I offered a plane ticket last year.
Got anything pressing here this week, Champ?
You know me. I skulk in the background like a pick pocket. More will be revealed soon. But seriously WTF do I know? Just another Bozo on the Bus.
I’m always going to give credit where it’s due. Not many rode that bus that you are currently driving man. Only wondering if you saw anything today that triggered action.
no. I took my lumps. still holding. Lots of dry powder. I am a patient mofo. saw this:http://stockcharts.com/h-sc/ui?s=!ENTRINNYA&p=W&b=5&g=0&id=p07193849145
I will be adding very soon. a little birdie told me that crashes start from such conditions. Caution guys.
OA, are you adding BABA here ? Thanks.
No.
But I bought a lot of /NKD tonight. 18015.
Wow, sick trade. Geez
Holy shitmitah!
You have a price limit before you sell this turd?
Asia is going nuts to the upside.
Anyone like the SUNE/first Solar yieldco, CAFD?
Been watching $TERP closely.
Look for Crude to lift and lead our market back to the morning highs
Retest recent lows by end of next week. Bank it.
OA, you’ve been holding off on GPRO forever. Does today finally provide a spot to nibble at? Thanks. (I seem infatuated with trying to make $ with this stock)
Jeff is BTE a LT investment for you and what kind of target do you have. Thanks in advance!
No, its a small small position I overstayed. Trying to salvage it.