Wednesday, February 11, 2009

I would describe the current trading environment as range bound however we continue to see several great trading opportunities each day.  At Trading RM LLC, we are focused on being selectively aggressive.  This approach allows us to be patient while at the same time looking for opportunities to get aggressive.  Today several of our traders bought AYE Feb 30 puts and profited from the move from 32 to 28.  (see chart below)

We will focus on being selectively aggressive until the market tells us otherwise.  The S&P is in a range of roughly 804.47 to 877.86 (S&P cash levels).  We will look for a decisive move through one of those levels to signal that it might be time to trade with the breakout.