Gitanshu Buch's Commentary

September 24, 1999

Here is the chart that describes the current position.

Trading:

  1. Booked partial profit on open Oct 685 puts entered 9/21 on downside break of ID/NR4 for the Dow.
  2. Holding long Oct 670 puts in addition to core position of 700-675 put spread and 700-725 call spread.
  3. No adjustments on core position yet.
  4. Straddle cost completely paid for through short term trades.

Technicals:

Travis has the ball, follow his advice. Gotta admire the trader in him. Flipped from extremely bullish to extremely bearish in a heartbeat - and followed through on it.

He will be sorely missed.

Action plan for next couple of days:

If things get ugly expect short 675 puts to be assigned. If that happens, you can either exercise the 700 puts or be long them depending on your short term outlook and account capitalization.

We have a bulk of our expected 50 point round trip captured. Time to wear our helmets and move on to greener pastures while the world goes ballistic.

I will be bidding cheap for ATM calls, since we still have a long time to expiration.

Gitanshu