Options Trader: Monday Wrapup

by: Philip Davis

That went fairly well!

We held our levels, even had a tiny advance and made a few fun trades along the way -- what else could you ask from a Monday? It was anything but a clean getaway though:

US Markets 09 01 2007 Chart

Oil had a wild ride today, opening just over our target at $57.25 early this morning before falling back all the way to $55.10 around 11 and splitting the difference to close down .22 at $56.09. There are still 297M barrels worth of open contracts and just 8 trading days to decide what to do with them.

Oceaneering International Inc. (NYSE:OII) jumped up 7% today, just daring us to short it, and I stopped out of my April $40 puts and picked up some $37.50 puts for just .85, just in case reality attacks. Other than that play, we hung onto our oil puts and picked a few more up later in the day.

Gold went nowhere but recovered off a dip close to $600 while the dollar held flat for the day, just above 84.5.

Oil Dollar Gold 09 01 2007 Chart

On the whole, as we expected, not much happened today at all.

Read all of Phil Davis's articles on Seeking Alpha