Entering September Expiration Week

The September 18th expiration looks good. The market hasn't tanked (yet), but it hasn't skyrocketed either, so it looks like the short Sep S&P 500 "Double Short" (SDS) 39 put/long Sep SDS 67 call spread will expire worthless and I'll get to keep the $9.

My other trades look good for Friday too (short the NutiSystem (NTRI) Sep 12.5 put (~$47 credit after commissions), short a Sep Cal-Maine Foods (CALM) 25 put/long a Sep CALM 22.5 put (~$44 credit after commissions).

I didn't hedge the NTRI put because I wouldn't have minded owning the stock at 12.5.

I also picked up a few dollars by selling a Sep BB&T bank (BBT) spread.

On the neutral side -- I chickened out on my September inflation trade (short 2 Sep (Deutsche Bank Commodity ETF (DBC) 22 puts) and rolled it down and forward (short 3 Oct DBC 21 puts). DBC closed at 21.93 on Friday -- too close for comfort.

I am still net positive $ on the trade and continue to believe in the logic that underpins it. I am convinced that we are in for 70s style inflation (or worse), due to the spendthrift ways of the Democrats in this Administration and Congress (and, to be fair, the big-government Republicans before them).

It is only a matter of time before commodities skyrocket due to the weakening and debased dollar. In my view, precious metals are first out of the gate-- with gold, silver and platinum all showing breakout strength this week.

But if DBC doesn't start upward this month, I'll buy back the Oct puts and keep rolling down and forward until it does.