Morning and trade update
Good morning and welcome back to the fear farm where they cultivate your worries into full-fledge fears for sell on the market.
It’s a Friday in 2011 and that means that we have to spend most of our stock market energy talking about some EU/Techno-/Bureau-(Fill-in-the-blank)-crats. Were the socialists in charge of Europe supposed to have figured out a solution by today at 9am? Or is their deadline tomorrow at 9am?
The markets are up a bit this morning, but without much gusto. They’d faded into yesterday’s close and so this morning’s pop gets the broader indices about 1/3 of 1% to where they were yesterday at 2pm EST. But my “gut” tells me they’re trying to run into the week’s close.
As for trading, I’m going ahead and covering both the short-calls and the short-puts positions that I put on just yesterday. We’ve made about 40% on the puts and we’ve lost about 15% on the calls, giving us a pretty nice net gain on the trade in less than 24 hours and the risk/reward that I saw here doesn’t favor us as well now that we’ve already had our latest Europe-resolution-for-now moment.
I’m also buying a little bit of FIO common finally here near $26.
