Overall, while still another loss, it wasn’t a bad day.  Once again, however, tight stops on futures got the best of me.  It’s a work in progress though.  Once I refine my futures trading skills, I’ll be able to post more consistent profits.  I did notice around lunch time trading in a zone somewhat.  Remember that scene from Office Space where they head to the psychoanalyst and that funky music plays in the background as Peter’s hypnotized?  Yeah, it was almost like that.  Anywho…

Trades taken

• 2xNQs
• 1 June 95 V Call
• 2 June 25 JASO Calls
• 2 June 25 BBD Calls

Today’s Profit / Loss:  -$25

Minor loss although off my lows for the day.  Some strength near the close helped cut my NQ losses in half.  Other than that, while I’m concerned I’m overly bullish, I couldn’t find many put plays today.  I noticed the Option Addict boards discussing Valero (VLO), but if oil prices do begin to come down, I think VLO and other refiners benefit due to the decrease in crack spreads, making it more profitable for them to crank out the good stuff.  Volume was awful as well as I’m sure others are saying.  I haven’t been trading long enough to understand what the differences are between a low volume and a high volume day, but it appears there is quite the difference.

The action today was anemic.  Now I understand what folks like Dinosaur Trader and others complain about when the markets behave like today.  It also didn’t help that oil reached a record $126.22ish at its high.  Visa took another hit today, down another 4 points.  It’s reaching my entry/exit target of ~$81.  My feeling is that folks will begin to buy Visa next week and perhaps pin it near the 85 strike price but only Monday can tell.  There’s quite a bit of call open interest from 80, 85, and 90, so I would expect Visa to recover rather nicely.  With the larger bankroll I have, I’ll probably purchase one or two May 85 calls and one or two June 90s for a longer term hold.

Trades Taken: 3 x NQ

P/L: +$10

That’s right, I’m positive on the day and trading the NQs at that!  A victory is a victory.

We’re off to Yappy Hour (happy hour for dogs… don’t ask).  See you tomorrow!

No trades taken yesterday due to other commitments.  I was around in the morning and could have traded a perfect short on Visa but was unable to pull the trigger.  I’ve noticed that happening more and more as of late which reminds me of my trading fears about 3 months ago after the markets crashed about 20%.  But today’s another day and my account continues to grow from deposits.  Need to work on fear… must reread Trading in the Zone…

Crude is now over $125 this morning.  Be very careful.  As oil goes higher, there’s very little chance the markets can follow.  AIG also missed earnings last night which has helped put a damper on the markets this morning.  Futures are down about 90 points with fair value around positive 40, for a net difference at the open of about -130.  I don’t forsee this being a pretty day.

Took a short position with puts on Visa around the open with a stop at the high of $86.05. So far, VIsa’s holding up extremely well in what looks to be a rough day for the markets with the Dow down about 90 points. More than likely I’ll be stopped out of the position for a loss but we’ll see. I’ll update as the day goes on.

Update: As I figured, never short Visa.  Ever.  Out with a loss after commissions of $22.50.

Futures are looking a bit lower this morning.  Sometime last night futures spiked down about 20-30 points for some reason.  My guess is the Asian markets had opened up and were hedging against potential downside this morning but it’s anyone’s guess.

Visa’s looking weak this morning with pre-market action taking it below $82.  I will most likely take a nibble at $81 which appears to be a good support base with two failed breakdown attempts over the past week at that level.  If $81 does break down, $77 appears to be the next logical support base.  I still don’t think well see Visa under $80, but one never knows.

Option Addict has released his latest watchlist this morning.  If you’re in need of ideas, just starting out, or need to see how JK works, head on over and check it out.