Sorry, BOOM, I stole the title. However, it is quite appropriate. No point in me rehashing the news…reading The Fly’s post should be more than enough.
Tomorrow, I plan on drinking copious amounts of green beer in celebration of the Greatest Drinking Day This Side of Cinco-de-Mayo. I’m assuming many others will be joining me, some in celebration, some in desperation after they will have given their 401k balances over to iBC readers.
Other plans:
- Close out long calls. No need to risk such things right now.
- Ride long put in [[CWST]]. Sidenote: don’t trade options with such low volume!
- Close out short straddle in [[TMA]]; volatility does not play well with it.
- Ride long straddles in [[GOOG]], [[RIMM]], [[NG]], [[JCG]], [[TTWO]].
As far as new positions, I like The Fly’s plan. And I quote:
Long gold, via [[DGP]] or [[GLD]].
Short dollars, via [[UDN]]
Long Yen, via [[FXY]].
Sadly, only FXY has options. So here are some options plays, more or less corresponding to the others:
- Long gold via [[GDX]], [[^XAU]], [[XME]].
- Short dollars via [[SKF]]? I’m not really sure if there’s a better way out there. Maybe [[DBV]]? Might as well just go long Euro via [[FXE]].
None of these are really ideal ‘stocks’ for options; their volatility is either too high (ex.: SKF) or too low (ex.: FX*). But in the current market conditions, low volatility may not be such a bad thing…thus, ITM options in FXY & FXE seems like a good idea to me…
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