The market seem ready to crack but it is not. So I am taking profit on my CIBC short here on a weaker volumn retest of the \$70.50 support (Figure 1). I bought 3 puts contracts four weeks ago at \$5.00 when CM was trading at \$74.02. Then I [added 3 more contracts with the same strike price and expiry for \$5.65] when CM was trading at \$72.30. The average cost was \$5.35. Thus, profit is \$750 - (\$12.95 + \$3.00) x 2 = \$718.10 = 8.0% of total account.
[caption id="" align="aligncenter" width="570" caption="CIBC (CM.TO) intraday"][/caption]
This is the last of my positions. I have no more outstanding position in any market. CM.TO looks to be on the brink of a collapse. I may be making a mistake here by offloading my shorts before the fireworks. However, as I was saying, the market is still hanging on. Furthermore, there's a positive divergence for CM.TO as shown on Figure 2 according to the oscillator at the top of the chart. So I am taking profit now to reduce my risk as this position is relatively big for my small RRSP trading account.
[caption id="" align="aligncenter" width="570" caption="CIBC (CM.TO) daily chart"]1[/caption]
[added 3 more contracts with the same strike price and expiry for \$5.65]: http://www.quantisan.com/bought-3-cm-10oct-puts-74-00-5-65-mark-72-30/