Trade Update

On Friday I did get my double diagonal set. Today I will be looking to set a butterfly, but only if the parameters are good. I also have one speculative trade on GLD, a broken wing butterfly. I will post that once I get a fill. And finally I will be setting a MNX calendar, good trading everyone.

Calendar

Today I added a long Vega calendar position to diversify my Greeks a bit.

Jobs

The jobs number came out this morning and it was nothing to write home about. It came in a little worse then expected with a new unemployment rate of 10.2%. Over the recession till now the actual loss of jobs has been improving. I think its more about job creation then less jobs lost this month. Even with this number coming out this morning I still believe 1100 is the next stop.

Below I have two trade ideas.

Wheat has a great chart building and I think a great area is around 501.00 to get long with a call spread of just long the future.

Trade Idea

Even if I think volatility is coming out doesn't mean I can't have a long vega trade on. Volatility diversification is what I like to call it. I have big exposure with short vega trades, so I decided to set some long vega trades.

Major support is at about $18.50, and it seems like we are headed to that level. When we get to that level I will reset a calendar or some thing else that is long vega. As of right now I looking for volatility to come out.

Volatility

Today was a non event day with major indices advancing slightly, and the $VIX making and holding a very important level. Last week I bought a Nov/Dec put calendar based on my thoughts of higher volatility off these low levels.

New Trade

New trade on the $RUT a 610 put Nov/Dec calendar. I will keep you posted on any adjustments.

Right now I like where volatility is and we might get some stabilization or we will move higher in vol levels. If the $VIX breaks the 22 level or the skew starts to widen I will exit the trade no questions asked.