USNA 12/14

Well…

USNA has officially become a boring trade…   a bit too boring!  Which leads to us to believe that something must be afoot…  so to speak.

We would not be surprised if the new week, and BTW, also expiration week, were to greet us with some significant price manipulation in yet another attempt to wreak some havoc among the complacent. 

We have been selling ATM premium throughout the week (not today) after having established our big 45 Call hedge to limit our exposure.  We also have been adding JAN 35/30 Put Spreads, and some DEC 35’s and 30’s at low prices to minimize the downside effect, should the news/event that we have all been waiting for finally occurs next week.

On Monday, if the price opens near where it closed today, and the 40 Call prices show an appropriate decay from the weekend, we may cover our short position on those if the price is under $.40, and open a “spec” hedge with those same 40 Calls Long, with the expectation that some sort of false rally will be attempted as has been the pattern in months past.

It’s just too quiet.

Coach BD