Monday, August 2, 2010

Bubble forming in bonds

Even Forbes is getting in on it now:

“Have Americans ever been satisfied with earning a steady but low rate of return? What we have in American history is rolling from bubble to bubble, whether it’s stocks, real estate, commodities, emerging markets, time shares . . . when one bubble bursts they are moved to the next one.” Lee implies that the bubble currently forming is in bonds.

9 comments:

  1. Closed out the last 2 (of 6) of the FXE Sept-125c play at 6.60 (up 4.86, +271%). I was going to hold these longer but such a quick rise in a short time frame warrants taking some profits.

    Having become VERY weary of any headway made by TBT (up 2% today), I picked up 20 TBT Aug-36p for 0.60 as a day trade. Looking for 0.80 by EOD (up 0.20) to sell half (+$200) and another tranche tomorrow.

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  2. Aug 3 - off'ed 10 TBT Aug-36p @ 0.70 (+.10) to lighten the downside load by half.

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  3. 8/3 - Entered into an SDS bull put spread (which, on SDS, is a market down play) - Bought 10 SDS Jan11-32p for 4.49, sold short 10 Aug-37p for 5.67, net debit 1.18.

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  4. 8/3 - bought 3 XEC Sept-75c at 2.10

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  5. 8/4 - Rolled a portion of the SDS play: BTC 10 Aug-37p, STO Aug-31p for net 5.00 debit (5.90/0.90). [Note, trade on 8/3 was net credit 1.18, not debit as stated]. Now in the following spread:
    10 Jan11-32p at 4.49
    -10 Aug-31p at 0.67 (0.90 credit - 0.23 lost during the roll).

    Net debit 3.82 for the new position.

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  6. 8/5 -

    gambling on good CROX earnings. 8 Sept-13c for 1.10.

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  7. 8/5 - in 5 DBA Jan11-28c for 0.75

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  8. 8/5 con't:

    rolled the ridiculous position of 1 PCLN Oct-150p to the 220p for net debit 2.80 (3.42/0.62). My original basis was 8.79 for the 150p, so now the rolled 220 put has a net basis of 11.59.

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  9. 8/5 final trade: Bought 990 shares of NWBO at 0.99

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