1:05 pm PST. Yes! We are on the verge of a vertical market! …. Until about May. 🙂 And then in May it will be sell and go away. The market will probably correct all summer long, and then continue to the phase transition after the summer.

I think the Dow could reach 21,500 by May. I am very bullish here.

Those BAC calls ultimately went to +340%. Breathe, breathe. I have never made those sorts of returns in 5.5 hours. But I deserve to. lol.

11:17 am PST. Omg, BAC. My options, had I held them, are now up 200%. A couple of more block trades. 23.86/.85 about 1 million.

10:00 a PST. Forget the bounce, FXE going down on a black-diamond ski slope. This is not the bunny hill.

9:40 am PST. I closed TLT puts, next week expiry, for +28%. BAC took about three hours to reach my target on the nose 23.78 and is backing off.

8:39 am PST. BAC high 23.75, options 100%. I want to see at what price they expire tomorrow.

8:08 am PST. BAC almost reached my target 23.78, reaching a high so far of 23.72. My options would have increased 90% at 23.72. Very interesting!! On an option that I purchased just out of the money and expiring tomorrow, I had no clue how theta would play against delta and whether BAC would actually reach my target. Target practice is key! On an option that expires in one day, theta is going to eat away real fast at those contracts. You want the stock to move in your favor immediately on an option that expires the next day, and here that is what BAC did. The trade would have taken about 1.5 hours with a return of 90% from the print to the target, with an underlying price move of .28. 🙂 The stock went from out of the money to in the money. I think once the price moves in the money, theta has less of an effect. Just learning these things – half real trading, and half paper trading in my mind. I have to have some skin in the game to really learn. 🙂 Also, to learn how much the options would move against me on the minuet corrections.

8:01 am PST. USO continues to make gains today.

7:22 am PST. Selling off now, perhaps the second print was a sell.

7:18 am PST. another 584K at 23.61, going to really rip higher now, but I am out. Doing post-mortem now on my trade. lol. Calls would be up 60%. Interesting

7:04 am PST. Sold calls for +25%, expiring tomorrow. now its probably going to rip higher.

6:35 am PST. BAC had a 549,536 share block trade at 23.35. Upside target 23.78.

6:33 am PST. JNK getting a pop higher at the open. It closed .01 above the prints yesterday which implied bullishness today and having it now. Target $37.

6:13 am PST. FXE has made a new low to 103.98 this morning. I think post lunch it could do a countertrend bounce back up to 104.50 over the next day or two.

1:08 pm PST. I had to laugh because SPY decided to do the range-bound correction first before making another attempt at $236. I did two good trades today – I closed out my FXE puts for +120%, the best returns I have had so far since wading more into the options market this year. Second, I closed out BIDU calls from two days ago for about 40%. The rest I stopped out of and there were a lot of em: GDX, GLD, SLV, TLT puts; AAPL, SPY, DAL, FXI calls. I trade the weeklies. Some of them expire this Friday and they move fast. I think, however, had I held onto my AAPL and SPY calls until the end of the day in accordance with my view that SPY would try for $236 I probably would have profited, but being new to options and seeing that the trade was not going in my favor I think I got shaken very easily. So, good learning experience today. The rest, I am glad I got stopped out of.

JNK closed .01 above the prints, which would imply bullishness on SPY, but I am not sure, so I have no trade on there.

Interestingly, treasuries were up today along with the indices, dollar, and gold.