LONG WEEKEND

Hi Folks,

Market very close to a short term top in my opinion. If not for the long weekend I would be buying SPY puts for next week. Markets are closed on Monday so I don't need the extra day of decay. As I mentioned before I think the short term top in this market will be around 137 in SPY and we got close today.

Today I did a quick flip in GOOG Feb 600 puts. I bought them for .25 and sold them for .40. I lost all of my money in my trade from yesterday. I bought the SPY 135 puts for .20 and they are going out worthless.

Have a great weekend!

Thanks and Good Trading,

Tim

OPTIONS EXPIRATION

Hi Folks,

Tomorrow is the last day for trading the February monthly options. Monthly options expire the 3rd Saturday of each month and since there is no trading on Saturday's, Friday is the last day to trade them. These are different from the weekly options. They come out the Thursday before the next week for trading. So the weekly options that expire next Friday came out today.

I am holding a short position overnight. I but SPY 135 puts at an average of .20 and yes they expire tomorrow. Not a great trade so far. We will see how the market looks in the morning.

Thanks and Good Trading,

Tim

OPTIONS TRADING

Hi Folks,

I only executed 1 trade today. I bought GOOG 605 February puts @1.70 and sold them @3.50. As always these trades are live tweets on twitter. For those who do not know options, they consist of either calls or puts. Calls are bullish bets and Puts are bearish bets. They offer incredible leverage and defined risk. As you can see from todays trade I made 105% return in one day. I do not recommend them for those who are not familiar with them. I use them to trade intraday and over a couple of days for the most part.

My bias remains the same of selling the rallies.

Thanks and Good Trading,

Tim

SELLING THE RALLIES

Hi Folks,

Just sitting down now in front of the computer for the first time today. My bias remains the same as it has been now since I blogged about it on 2/8 BOND AUCTION, I am selling the rallies. Major selloffs take a while to form. There are many warning signs prior to a major selloff like we had this past summer. Those signs are not in place yet. So to be clear, I have had a short bias since 2/8 but it is not the looming crash in my mind.

Thanks and Good Trading,

Tim

DAY TRADING USING WEEKLY OPTIONS

Hi Foks,

The action is pretty boring to say the least today. I day trade SPY often on days like this using weekly options. The reason is the risk/reward is greater. If anyone is not familiar with options, feel free to comment and I will respond. As always you can follow my trades on Twitter.


Thanks and Good Trading,

Tim