Big Ben Watching

I think the market hates me right now, but I am not discouraged one bit. However, I may begin to lose some faith after Ben Bernanke gives his speech. The market is expecting some sort of guidance on what the Fed is going to do in the near future. Either way, I continue to believe that volatility will be prevalent in the market especially if Mr. Bernanke hints against a rate cut. I believe the shorts were definitely covering some of their positions going into tonights speech. I picked up some additional put plays in hopes that a 0.25 basis point cut will not suffice for the market and certain stocks will tumble. Of course if there is no rate cut at all, then I believe there will be a HUGE sell-off.

If you read my last blog about my grand scheme of getting into RIO on the cheap, well then you can probably guess that RIO did not hit my lower price target. In fact the stock was rewarded quite handsomely and the calls now are sporting a nice premium. So for the mean time, I remain slightly bearish and is why I established some new put positions. I realize these will probably never come to fruition, but the SOLF play is strictly based on its huge move upwards, while AMZN may get hit with another false breakout like it experienced in October.

*AMZN December 80 puts .ZQNXP ($0.93 premium)
*SOLF December 12.50 puts .QFGXV ($0.55 premium)
*FLEX January 15 calls .QFLAC ($0.12 premium)