Monday Monday

Looks like the swine virus is in full effect around the world and may turn out to be an epidemic. Cross your fingers that it doesn't happen. Dragged down the markets all day long while sending bio-tech stocks higher. Bio-tech stocks might be a good play if the US government decides it needs a stockpile of vaccines for the public. I won't be buying into this but it may not be too late for anyone out there to try.

On a more personal note, I'm going to try and liquidate a portion of the account. I am going into an investment that will require capital from the portfolio and I would also like to start mopping up some taxes. As of right now, I'll need to withdraw around $2,500 for taxes which is going to be tough because I have a margin debit. In an attempt to deleverage, I made some moves today that I wouldn't have normally. I bought to close two profitable trades that I am sure would have been resulted in 100% profit minus commissions if I could have held them to expiration. This has a negative effect in my account by increasing my margin debit. This is still preferable to me in case I do get assigned some of these options and have to purchase securities with new margin. I also sold out of RF. I still think this trade could have been profitable. (the rumor is that its going to be the only bank to fail the stress test).

Here is what I wanted to do.  I wanted to repurchase my short term close to the money call which is what I did for a 19% gain. I wanted to sell an ITM call for August 09 $5 for $1.75. This would have protected my downside risk to $4.25 which would have produced a nice gain as long as RF wasn't trading below 4.25 come August. I could have already bought this call back for a $.35 profit or 20%.  I would let it run because I still think RF is going down but all in all, I think I could have made a nice profit. Oh well. I think the new venture will be highly lucrative.

Here are the trades

Bought to close AA June 09 $8 Put (29.79% including commissions)

Bought to close RF May 09 $6 Call (18.77% including commissions)

Sold RF 500 shares @ $4.9704 (-17.77% including commissions)

DOW down 51.29

S&P 500 down 8.72

Portfolio down $1,180.72

What's the deal for tomorrow? I'm still trying to deleverage and I will be looking to sell out of a couple of positions. I'm really trying to see a big move up in the markets tomorrow that will allow me to do this.