Options expiration day provided at least one opportunity, and price action in general was good.
About three hours into the open I sold C 33 puts that were expiring on Friday. They were paying about 44 cents each while C was trading around 33.25. I looked at the volume and open interest, and I figured that if it did go below 33 I was facing at most (absent something really earth moving) having the stock put to me at around 32.50ish. Sure enough, not long after I sold the puts, C started to fall and went down into the 32 range. At that point the IV was so high and nothing was worth any real news so I sold some $30 puts expiring next week that were paying way more than they should be. I guess when people panic they know how to really panic. While I wanted to, I did not add to the 33's due to the possibility that the whole market could really take a dive. If it did I wanted to have plenty of buying power to start entering orders with.
It didn't take long and C was right back but gave me a little bit of a ride (I did not have a big position on). They are now done and expired and I will still be facing next Friday unless I cover with the $30 puts. I think I will be ok if I end up getting C put to me for $29 and change so I am not worried about it. I like C and I really like C under $30.
The PCS puts I wrote the day before traded lower for most of the day and ended up lower. I intend to hold a while longer and see how that goes. I am expecting a fairly decent week next week so hopefully I will be able to just watch the time run out and they will be OTM expiration Friday.
I can't lie, I am not liking my gold short. Especially after the downgrade by the US even though I don't think the downgrade matters. Of course liking a trade doesn't change much in terms of if I will make money or not. Many of my trades I don't like and they do great. Gold has been up 124 months in a row according to kitco's Frank Holmes. It also has been up so much recently that it triggered a TDCombo 13 on the daily chart. This is about as strong as a sell signal as I have seen with it in a long time. I will be looking for it to correct to under $1550, and I will review it again for direction. One could say that it's a bull until it's not, and that after 120 months it had a lot of juice left in it. That is all true, but the last time it gave a sell 13 signal it gave a strong pull back and unless it can break to a new high again, I will look for the correction. My short is a synthetic naked call. Each day I collect from the time decay.I am currently reading Quantum Trading by Fabio Oreste and looking at other ways of reviewing DeMark indicators such as DeMark Prime and Thomson with the DeMark add on.