Senate hijinks on a Thursday of expiration week

I am not sure why politicians want to create havoc for options traders but apparently that's the thing to do. There is a banking committee hearing where Bernacke and Paulson testified. Bernacke some how mentioned that there are more write downs to come. As a result, the market is down across the board.

Also interesting is the NY investigation into the monoline bond insurers. There's a lot of stick waving to convince them to merge or sell assets to Buffett. Somewhere in the conversation, there was threats to strip the muni assets forcibly. All the bond insurers have to say is: Blame it on the shorts. Interesting situation to watch.

Since it's a crazy day, here's a quick take of the positions I am working on:

Wachovia (WB): Looking to add additional delta in the form of March / April 30 puts on the pullback. I think the banks have been kitchen sinking it and we might even get write ups.

Nautilus (NLS): Down after earnings as I expected. They reported total kitchen sink quarter. Tried to pick up some more (I already have a huge position put on from 10 to 5 with an average cost of 8) on the way down at 3.75 but missed it. Not going to chase it on a day like this. Got orders in place for 3.75 and 3.50.

NVIDIA (NVDA): Saw it on the newsfeed and reflexively trying to add March 22.50 puts for 1.50.

EMC (EMC): Trying to buy to close the Feb 17 puts I have for even (take a hit on the commissions). Already have some Mar 15 in place, will sell more naked puts on movements down.