Portfolio action

This morning I  put portfolio B mostly in place (see Three portfolios).  I only put in 50% of the large cap weighting (so it is at 25% of the portfolio, instead of the eventual planned 50%).  Psychologically I have found it is better to ease in a little with significant investments like this—if the market goes up from there you can tell yourself that you …

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Doubling up on Oil, betting on VIX dropping

Did covered calls on Oil — bought USO at 37.19, sold-to-open May 37 calls at 1.02 for a net investment of 36.18. Created a bear spread on VIX options today.   Betting on VIX going down is forecasting that the market in general will be flat or positive.  I sold-to-open June VIX 16 calls at 10.26, bought  June  VIX 32.5 calls at 1.88 for a …

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Back into Oil

I did covered calls on USO,  selling-to-open the 41 May calls at 1.33 and buying USO at 41.47 for a net investment of 40.17.    The US economic situation continues to look up, and the oil spill in the Gulf will do nothing to help the supply situation.  Plus it gives companies an excuse to raise oil prices…

Greed takes a holiday

I believe the best way to understand the ebb and flow of the market is to view it as the interplay of fear and greed.  Of course, economics are important, but I view human psychology as even more fundamental to the movements of the market. Tonight fear has the upper hand.   US markets have been down two days in a row, the Asian markets …

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