Sure, the Dow fell nearly 160 points today, but much of the drop was accomplished fairly early on in the session. Volume by late afternoon at both the Big Board and the Nasdaq was lighter than normal. The market was at an impasse of sorts going into the close as the bulls opted not to do any bottom fishing and the bears decided not to push the market down even further - both sides kept in check by some very important economic data that's due tomorrow. Among the reports: durable goods orders, Conference Board consumer confidence and existing home sales.
A little before the close we sold our Apple (AAPL) Dec90 puts at a 58% gain and our Dec12 VIX calls for a gain of 25%. The price action in AAPL was lousy heading into the close and we anticipate further pressure on the stock, at least for the early part of tomorrow as a normal correction takes hold. We sold our put position today and locked in a nice gain knowing full well that AAPL is a market darling with almost a cult like following. Longer term negative bets against AAPL have proven fatal to many, but it was worth a quick downward nibble today.
No comments:
Post a Comment