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A View With a Room

By

May peace be with you!

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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.

position in fnm, gs

Todd Harrison is the founder and Chief Executive Officer of Minyanville. Prior to his current role, Mr. Harrison was President and head trader at a $400 million dollar New York-based hedge fund. Todd welcomes your comments and/or feedback at todd@minyanville.com.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.

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