What do you know, at around the 860 level buyers showed up again to buy the dip and finish above 875. This is bullish on the surface even if we only finished slightly above resistance. Financials did move back into bull confirmed which is supportive of more upside in stocks, things could just move into an even more overbought condition.
This move is very aggravating because all the positions I wanted to get in have moved by on average 20%. That is not to say I haven't profited from my short options, however there is no comparison to the risk reward that is provided by long directional option plays. I will have to remain patient and look for pullbacks again or look at better lower risk plays.
JBLU managed to finish above the five dollar level so I did not cut it loose but it has been acting very weak. If everything works out the way I hope I could sit and do nothing for 2 weeks and make another 10% if the options expire worthless. One thing I will be looking to do on the next pull back is look to pay for my long positions with some short puts and see how that works out. my only concern is the cost of transactions and having to unwind more positions if they go against me but if I can get paid some premium while profiting that is even better. The other problem is that it will require more margin so that may cause me to not do it if I want to take on a decent amount of positions.
I'll take my slow and steady gains but I'd rather have steady and explosive gains like before, but I don't want to be greedy. If I stay patient and calculated I can have good gains with low risk as I have before.
Total Return for 2009: 136%
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