USNA 12/18

We covered all of our Short 40 Calls today and repurchased those same 40 Calls Long today for an average price overall of ~.23  We continue to believe that the traders will make yet another attempt at a false rally in the next couple of days.

After today’s trades, our MAX loss expiration would be at ~$35, rendering our hedge 40 & 45 Calls, and 30 & 35 Puts worthless, and our Short 40 Puts at MAX Loss.  Our overall position, however, would still be positive due to our LT core Short.  The ST loss at $35 would be ~$2.90/contract short, with a near 150% ST hedge below $35…

We are actually hoping for a manipulation rally to collect some significant ST gains on our Call hedges.

But history is NOT necessarily an indicator of future action, which has been shown time after time with USNA.

Coach BD