Monday, February 06, 2006

Business As Usual

I've got to tell you, usually my most-oft visited index is NDX-100 with S&P-100 being the second to click.

These days it's OIH. Yes, I am that excited about Oil.

Update on that: OIH closed up 4.12 with many individual issues backing up the number. Our fund's view as far as gamma is concerned is unchanged (Cadence Capital is long gamma in APC, OIH and a few other issues). Personally, I am now ready to become an outright bull, pending morning action. I still think the sector rejected a MAJOR short setup and is thus poised to head higher. Assuming morning does not bring us a weak open (with an unfilled gap), I'll be getting long delta on a basket of these:

APC, GSF, RCD and WFT.

As exciting as Oil is, there is life in other sectors. We're liking the recent APPL break and are now selling front month credit put spreads at 60 strike. We're also selling credit spreads in PD and other miners. Finally, SOX came back to life and is reducing our short gamma with every tick higher. Nothing like a blissful experience of exponentially receding pain (for now).

Cheers,
/Dmitry

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