What a wild ride this SLV trade has been. I continue to trim out my SLV call options, the remaining which are up through the roof at this point with several hundred percent gains on them.
On the other hand, I’m not trimming any of the VIX call options from yesterday or prior purchases though they too are now up nicely.
Cisco’s relatively light guidance and especially news of another round of layoffs, this one of 40o0 hardworking people, after last night’s report wasn’t received especially well by the markets. The stock is down about 6% right now and I think it might be headed lower before finding a bottom intraday and probably for a while after that.
I am putting on a new short position for the short-term — WageWorks. WAGE is the stock symbol. I’ve mentioned before that I’d like to get short this stock and I’ve been patiently waiting for an opportunity to do so. The stock is up in a straight line and just issued a secondary with lots of insider selling and it’s trading at 7x sales and more than 50 times forward earnings. In this bubblicious stock market, this stock could certainly continue its ascent, but I’m thinking that along with the broader markets that this thing looks like its headed lower for the near-term too.
I’m shorting WAGE common stock and also bidding on some WAGE September $45 puts.
We were cautious the last few weeks with stocks as others were greedy and simultaneously we were greedy in the precious metals as others were panicking. With the big reversals in both stocks and metals in opposite directions working for us, it’s steady as she goes. Flip It.