TRADE 11

“We’ll cast some light and you’ll be alright. We’ll cast some light and you’ll be alright for now”

– José González

Brilliant.

Trade 9 started getting a little too directional – basically, the t+0 line was slanting down which meant that I would start losing profit if the market continued north.  I closed the trade on Friday for a 3.5% gain in 8 days.  Easy, I’ll take it.

Opened up trade 11 which is a 2615-2585-2530 BWB.  Expiration is January 5th.

Trade 10 update – currently up 2.6% after only a few days in the trade.  I’m looking for 5% on this one as long as the SPX stays above 2600.

Here is the 7 day step, combined view of trades 10 & 11.  The SPX is currently around 2602 and the t+0 line is gently sloped up, so I’ll be looking for a small move up in the market over the next few days.

My XIV trade continues to perform very well and is now at 118.81.  That’s a 10% move up in less than 2 weeks.  I currently have about 35% of my portfolio here and may look to increase this to more of a 50/50 allocation between XIV and the SPX market neutral trades.  I’ll continue to stay in XIV while the VIX is in Contango.  If it looks like we are getting closer to backwardation, I’ll switch to cash and possibly VXX.

I mentioned that I’ll be adding a results page to this website soon.  Although 10 trades is not nearly enough to have meaningful stats, I’ll go ahead and get this up once I’ve closed trade 10.

We had a quiet Thanksgiving weekend.  There was plenty of football, movies, toys, naps and food to keep us busy and rested at the same time.  B decided he wanted a real dinosaur so we did some research online to find the best one.  Ankylosaurus was the overwhelming favorite.

I had a few lizards growing up as a kid and it’s a safe bet he will too.