Wow, what a ride!
We had a super-busy day on Friday and it's a great example of exactly why we play this hyper-aggressive virtual portfolio the way we do - with balanced positions on both sides, taking advantages of moves in either direction - not just to cash out winners, but to press our losing bets on the theory that our ranges will continue to hold. They will, of course, break one day - and that's why we keep such a close eye on our watch levels but, as long as they remain range-bound - it's just a little gold mine that we can tap over and over and over again.
We caught the downturn on the dime on Wednesday and yesterday it was crazy from the first minute - so much so that I had to send a 7:15 am Alert to Members regarding the earthquake in Japan, an update on the "Day of Rage" (as we expected, a big nothing) and how the Wall Street Journal was once again ripping off my headlines.
On the whole, we got the spike low and then the ridiculous run-up we had expected for Friday - the Japanese quake was just the "reason" de jure for the bots. Although I sincerely hope I do not have to remind our Members of Rule #1 (as we only have two rules) - I did send out another Alert at 9:34 saying: "$25KP Moves. I do not have time to check prices – take money and run on FAZ short calls, USO long puts and EDZ of course. More to follow." - as there was not a second to waste if we were going to sell into this particular excitement.
At 9:40 I was already flipping bullish and we added the DIA March $120 calls at $1.03 in the $25KP and then, by 9:59, we had a slew of adjustments to make, which I will detail below.
