Options Expiration Results

I was 5 for 5 in September -- to include the original short positions in the 2 Sep Deutsche Bank Commodities (DBC) 22 puts and the Sep S&P 500 Double-Short (SDS) 39 put.

But it was too close for my comfort level (22.43 for the DBC and 39.67 for the SDS), so I added a contract and rolled them down and forward to Oct. The DBC is now a 3 contract 20-21, 24-25 iron condor with a net credit of ~$102 and the SDS is now a 2 contract 36 put short position with a net credit of ~$74.

For those (few) folks who read this blog to see my political screeds, this options stuff is probably not very interesting, but for me, maintaining the freedom to succeed or fail in the capital, commodities and interest rate markets with minimal government interference is a vital part of preserving the Western way of life. Ideally, these markets (to include the derivatives markets) are the vehicles for providing capital formation, price discovery, liquidity and credit in the economy -- and, in return, participants are rewarded or punished based on how well they provide these services.

But I understand that options trading isn't the economic vehicle of choice for most people -- so for those who are interested, I'll be starting a new financial freedom blog in the next few weeks and begin posting my trading strategies and results there.

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.