SLV, ROYL, ACAD, EXK

The market has been sold 4 days in a row.  The SPY is down another .65%, that’s 3% in 4 days.  IBM is down another 1.24% but I didn’t trade it because I’d be too emotional about it for picking the worst day to short it this week while it’s down nearly 3.5% from the top this week (today is Thursday).

Fortunately I finally had a decent day else where today.   SLV’s been under fire not only because of its froth, but because of the margin requirement increase.   Today the US dollar popped up and the commodity took a major hit.  The crude oil was down $10, over 9%, and silver down nearly 12.5% (at the close).    I exited my SLV May 40 put today for $6.65 which I bought on Apr 15 for $1.24.  That’s a gain of 436%!!  Here’s the SLV daily chart from earlier today (an hour before close).

Of course this kind of performance can only be achieved via options.   My maximum drawdown at the top was ($1.04), basically down 84%.  Imagine if I had shorted the shares instead, I’d be in so much pain for so many days — I’d probably have taken loss and missed the selloff.

ROYL was filling the gap today and I bought and then used a 3% trail stop.  It got trigger when I was picking up my preschooler.   The 5% profit boosted my moral, even though it’s really just dinner money in terms of amount.  For once the stop worked for me.

ACAD was another good trade today.  That one I proactively exited as it filled up the thin zone for an average of 4.5%.  The fact that the stock went all the way down after I exited the last shares was icing on the cake.

My stop saved me the day in another of my trade, EXK, a silver stock.  Down just 1.7% instead of 15% by the end of the day!!

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