There are 8 days left until July options expire. The closest strike to the money is the 1125 which is 20% otm. At this time, I feel comfortable that all 3 strikes will expire worthless, however I will look to close the strikes at .05 when possible. I am now looking to place an August put trade app. 20% otm - currently that would be the 1125 strike at a premium of $4.40. The VXN has risen about 16% since my last post and the NDX has lost about 4.5% and currently is sitting on its 200 dma - a point which may provide some amount of support or area of consolidation, but in the end I expect it to give way, allowing for a further drop in the index.
Earnings season began today and AA had more of the same "less bad news is good news". Things really get going next week when more companies begin to report (INTC on Tuesday, JPM Thursday, and a few transports thrown in as well - the transports should give some early indication as to how far off the economic uptick will be). I plan on waiting to see how the market reacts to the earnings before placing the trade, however, should the VXN begin to come in, I need to act quickly to lock in evaporating premiums.
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