Friday, December 10, 2010
Sitting in 100% cash
I took advantage of the no commission on .05 or less at TOS and closed out some short $67.50 puts on KMP today which leaves me with a 100% cash position. This wasn't necessarily by design but rather circumstance. I captured 90% of the potential on this trade so felt comfortable closing it out and looking for reentry for JAN11 on a pull back and/or hopefully some higher IV. Right now with VIX and IV relatively low all around and six weeks to go until JAN11 expiration I'm content to sit back and wait for premium selling opportunities.
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I took advantage of the down move in KMP over the last two days to put on my short $67.50 puts for JAN11 at .70. This is the fourth month in a row selling the same strike price. This is currently my only position.
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