Fri Oct 28
I started buying calls back on the 25th (see prior post). I like to start with 25% to 33% of the intended size to allow adds. I generally won’t chase so this approach can mean a smaller position if it takes off from inception. I’m Ok with that as an equal opportunity profit taker. This time I underestimated the tech generals’ earnings misses and forward guidance. The upside is that I got to add to the position at better levels. Buybacks start next week. Given the degree of the selloff, I suspect these same generals will be aggressive buyers of their own stocks. Blackrock thinks the Fed will come out with softer language next week. Twist sounds inevitable, particularly by the Treasury. Twist isn’t actually QE as it does not change liquidity but the stock market will likely see it as bullish. It’s hard not to want to be long at these levels.
Good trading!
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