CNBC/Jabob - They love whatever is winning at the moment.
Markets/Japar - I don't see how this can keep going on real volume but the question is when will we see real volume again? See, if you exchange 1.5Bn shares (avg volume) on the S&P at a $50 average, you need $75Bn in daily transactions and, if the S&P goes up to $55 but the volume drops to 1Bn, you only need $55Bn in transactions and people can "afford" to pay more but, if at $55, you go back to 1.5Bn shares - now you need to actually have $82.5Bn for transactions and, if that money hasn't actually been created to support the higher stock prices - you'll find out pretty quickly because either the volume or price have to go down.
ABX/Tangled - Sure, we want to be bullish anyway so worst case is ABX drops $3 (20%) and you rooll the $13 calls ($5.20) to the $8 calls ($8.10) for maybe $2.50 and then sell the $15 calls ($4.15) for maybe $3 and then you net into the $10/17 spread for about $2.75. Now, wouldn't you love to be in the $10/17 spread for $2.75? That's the worst case taking a chance.
CLF/Maya - Damn, when you put it that way, it's hard to turn down, right? Actually, in the LTP, our position is 30 long 2019 $4 calls, now $5 (up 100%) and we sold 35 2018 $4 puts for $2.80, now 0.48 and this net $2,300 credit spread is now worth about $11,500 after a wild ride so let's not "adjust" it but take it off the table and make a new trade on CLF for the LTP, which will be:
- Sell 20 CLF 2019 $7 puts for $2.25 ($4,500)
- Buy 40 CLF 2019 $5 calls at $4.60 ($18,400)
- Sell 40 CLF 2019 $10 calls for $2.55 ($10,200)
- Sell 10 CLF Jan $8 calls for $1.13 ($1,130)
So we're cashing in $11,500 and keeping the original $2,300 credit for a $13,800 profit and now we're putting $2,570 back to work with a $17,430 upside at $10 and we can sell more short calls along the way.
