3900 in the SPX held and the long play worked out. This was a tough hold as the gap down was quite scary. So knowing the risk helps in these situations. While the traders were indecisive on S&P500, there were plenty of other plays that went well too.
Below is the some great low risk – high reward plays:
Vale:
Long term hold, but surely taking 1/4 off the position today. This is a play on the electric grid issues. Vale is a mining company that deals with nickel. An important requirement for batteries. Today, the news is pushing this… so buy the rumor… sell the news.
FCX:
This is also an electric battery play as this is a copper mining company. Not a perfect setup, but option flow was pushing this stock for a while and the indexes were getting bullish. Exit all of this position at 32 today from a call spread. Happy with profits.
SPX:
Taking 1/4 profits here again as we are testing downtrend line and getting close to our weekly bullish resistance. Still holding, but looking for downside insurance by selling premium with negative deltas into mid-september around 4200 if things line up to protect portfolio.
Other Longs Of Interest
INTEL (INTC) – This needs to close today over 31.10 to hold its weekly support.
AMC – This appears to be ralling above the monthly low in August, so we expect upside. Not holding for long and will be taking profits into Sept.
AAL – Good rally from 12.5 and will be taking profits as we ride upward.
SLV – Long here with stop below the prior main low 16 area on the close.
RAD – Still long from 5 on the option buy. This is considered a food company?? and can be a good runner.
UEC – Long uranium for energy reasons in Europe
URG – Long uranium for energy reasons in Europe.
Next Plays: Protection for Downside
Protection and insurance will be the next plan of attack for the portfolio. Todays rally is too big to even think of buying, all the longs got in and continue to load up last week on holding prior weeks low.
Will be holding longs and looking to protect downside either today or mid September. Will post more as it comes in.
October is a turning point for many stocks. So watching September to see where we close.