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A View With a Room


May peace be with you!


Simone Le Gree: That's so obvious, he's bound to think it's a trap.
Philippe Douvier: Yes, or it's so obvious that he's bound to think it can't be a trap.
Cato: It's so obvious, it's bound to be a trap.
Inspector Clouseau: That is why you'll never be a great detective, Cato. It's so obvious that it could not possibly be a trap!

--Revenge of the Pink Panther (1978)

Alright, my friends, I think I've found a solution to my internal debate. My dilemma has been one of timing as my big picture beliefs lurk in the back of my crowded keppe. While I'm not necessarily proud of the fact that they've infiltrated my day-to-day mindset, Cato, I am aware that they did and want to share that mistake (lesson) with my fellow Minyans.

As discussed, I've been trading (both ways) with tight stops around a plethora of June puts (short bias). While I juggle the importance of the breakouts and "blow off" potential, I've taken steps to balance the near-term uncertainty with my broader bearishness. How? I've schnitzeled in some October out-of-the-money puts in a handful of Boo's favorite names. Nothing crazy -- and partial positions -- but I plan on leaving these bad boys on while I do my thang each day. I wanna lock in vols while the VIX/VXN/QQV is at these levels and this strategy enables me to do that.

I'll share some of the names with you with the understanding that it's education and NOT ADVICE. This way, we can watch them together as we trudge through the summer and collectively find our way. The first two, Goldman Sachs (GS:NYSE) and Fannie Mae (FNM:NYSE), shouldn't shock anybody who's been reading me for a while. I think that the financials are a flawed complex and while I don't profess to know the timing of a downside catalyst, I'm of the belief that it's tick-tock city.

We'll talk more about this (in time) but it's time to juggle hats and tickle the ticks. Fokker is feverishly tallying the votes to today's poll and we'll announce the winners tomorrow. Keep an ear to the ground for tonight's Applied Materials (AMAT:Nasdaq) report (will color semis/tech) and, more importantly, spend some time focusing on your own happiness. This is a fakakta business and if you don't establish your own boundaries, you've only got yourself to blame.

Have a peaceful night.

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