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Trading Results 3/24/11

Today started out a little shaky with a raised price target for VRUS but that appeared to be more of a sell side promotion than a real opinion that VRUS is going higher.

VRUS gapped higher at the open and quickly found the way back down. By the end of the day VRUS gave back most of the gains and closed much lower than the open and near the low of the day. Fortunately largely as a part of the high implied volatility premium I was a seller of puts yesterday to hedge against the calls that I wrote. The puts largely mitigated the increase in value of the calls. Starting next week the time decay will become noticeable as it accelerates with 16 trading days left before expiration.

I had a few trades today including RHT, YOKU, and EBIX. I shorted YOKU calls today expecting that at a minimum the price will not be able to move higher faster than the time decay and with all the Chinese headline risk lately it would appear more likely when than if YOKU gets attention due to its current PnL. I am currently small with my synthetic short but plan on adding next week.

EBIX gave a William long signal at 21.18 which was pretty impressive considering the low of the day was 21.08. I was actually already trading back and forth along as a result of the price action and stayed small until the price approached the William signal at which point I added considerable size.

RHT gave a Brenton short signal and I faded the gap but kept the size small but also made most of the target other than the last unit which I was looking for an outsized gain but had to settle for less when the price moved back higher. As it turned out I did about as good as I was going to do.
EBIX + 523
RHT + 283
Today + 807