Sold out of all my puts at the first higher high for a solid profit. Loaded up on DIG for a bounce in oil & gas.
Why?
1. Price action dictated to sell my puts.
2. It's the day before op ex. Traditionally, the fed likes to mess with anyone short on opex by announcing something the night before.
3. Doing that would force a double-bottom, giving technical traders a justification to buy.
4. Energy is oversold.
If we break the morning's low I'll have to bail. I'm not looking for a killing. Option premiums are too rich with the VIX at 75+ so DIG will get me 2x leverage without the potential for VIX contraction on a rally.
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