Swing Trading Watch List – Oct 21, 2011

20 Oct

Options Expiry!

It’s that time of the month, the third Friday. Markets tend to be pretty wild in the morning on options expiry as traders close out positions and hedge as their front month positions expire. I stop accumulating front month options about 2 weeks before expiry, this is because the theta (for one) dramatically eats away if you are long an option as we inch closer to expiry.

Stocks to Watch on 10/21:

Longs: CRI, DECK, GWW, STMP

Shorts: none

Current Positions: CNP (long), LTD (long), NFLX (short), CRZO (short)

Still haven’t loaded the boat with new positions, just managing what I have. Once we break out or break down of this sideways consolidation it will yield great opportunity’s.

Stops above the highs of yesterday’s bar for shorts, and below yesterdays low for longs. Keeping them tight to lock in profits, and move on to the next trade.

Awaiting a break out or breakdown from this consolidation.

The SPY has consolidated over the past week making for very choppy intraday trading.

 

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