Taking Half My Shorts Off the Table

Trades:

Sell to close: 4 EWA Jul 19 puts @ 1.75, + 146%.

I closed this for several reasons. First, the VIX just hit 45, the highest in a year. The McClellan Oscillator closed yesterday at -327, an extremely oversold level. These are the day-to-day timing tools, and they both said "sell!" The intermediate technical indicator I used was the 1-yr chart with a 50 and 200 moving average. Currently, the chart shows the most oversold level in a year, at 20% below the 50 day moving average. Support right around $18, although the current price is about $18.50. Close enough. The final reason I sold was as part of my options risk strategy and discipline. (The rule I follow is that I want my options account to have a weighted average life-span on my account of six months even if all options expire worthless. I hope to ensure that I have enough cash on hand for new opportunities and limit risk with this strategic discipline.) The jump in this option had lowered my life-span from 6 to 4 months.

Sell 20% position in EUO @ $24.06, +14%.

Not bad for a month and a half! Everyone and their mother knows the problems the euro has. Short interest on the euro is getting ridiculous.

Buy to cover 10% position in AGO @ $14.55, +32%.

I never thought AGO would fall so far, so fast. The chart just shows it falling off a cliff, and there really hasn't been any news of muni defaults leading to losses. That's why I sold them in the first place, so I guess I might short them again should they jump back up to $20 or so.