simonsays452

74.50 Important Level For Utilities Trade

NYSE:D   DOMINION ENERGY INC
22 0 2
I entered APR             75 $D calls as a hedge to my $XAUUSD short and a "Dour Janet," ahead of the FOMC chair's speech last Tuesday.

Full trade set-up here: http://www.basementmacro.com/uncategorized/hedging-a-dour-janet-w-utilities/

The trade worked fantastically with the options returning 175%, as of Friday's close. I opted not to close the position because (1) the trade was working (2) I completely missed the sell signal at 75.50 and (3) the "Utility Trade" is a good hedge against slower growth concerns - which, I think should abate.

With this morning's pullback below the weekly bullish trendline support, I added a few more calls to my position. If we see a breakdown below the monthly bullish trendline support, I'll bounce from the trade. Otherwise, a bounce off this support should lead to a retest above $75, with a target of $76 - Yes, I know it's only 0.50 above the prior sell signal. I wouldn't suggest opening new longs, but if you're already in the trade, I think you may have another opportunity at $76 to exit.
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