Unlike the last year, which has been a time easy money was made just by being long anything (I choose Apple), we have entered another time of high volatility and a wild range trading market. It's important to be constantly evaluating the market and looking for reasons your current strategy is no longer working or will soon be no longer working.
My only core long position remaining is my short CMG $110 put. Yesterday afternoon, I added another short position by shorting USO at $36.31. I'm also surprised at how much I'm in cash, when the market is this volatile you can get 1% plus daily portfolio swings with a relatively small amount of capital allocated.
I also completed the straddle on BP by buying a June $50 call for $1.05. I don't know why options are priced so cheaply on BP, and it seems others are catching on as I just read a great analysis of the uncertainty surrounding BP.
I might close out one of my shorts this afternoon, specifically looking at how oversold oil is. However, USO is a tempting long term holding to keep since the oil futures contango is currently so steep.
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