Options update for July 7....Ouch, that hurt.
Well, I'm a lot poorer than I was when I woke up today. My first mistake was taking last Friday off, figuring it would be a snoozer day; my stocks traded 4000 contracts and I missed it all. Then I've got this terrible position in ABX--long stock, short puts and calls, and delta long. Wrong, wrong, wrong. The stock cratered early, and the volatility exploded, including the Leaps. My position still hasn't gotten any better...now I have to worry about the upside. Days like this make me wonder why I got into this line of work.
ABX: See above. As soon as the stock starts to stabilise we're going to try to crank the vol down, but too many buyers for now. (35,33.5)
N: Inco came to life enough today to drop .70c. The higher vol is still holding as there are sporadic buyers of 'cheap' calls. (27.5,26.5)
BCE: Thank goodness for Bell. It dropped .80c today and I managed to catch most of it. Still good two-way trade in the options and vol holding steady. (21.5,21.5)
I'm too depressed right now to fire off any broadsides at the exchange management (although they richly deserve it). Let me just point out that TXO and TXF set all-time records for volume in June. They nonetheless are rushing headlong with their plan, which will ruin the market for derivatives in a trice.
Happy trading.
Porter |
