Traders Corner   26 comments

The S&P 500 levels to watch today:

UPSIDE: 1967 (top of the Bollinger Bands).
LAST CLOSE: 1959 (June 19th’s high and the all-time high).
DOWNSIDE: 1957 (June 18th’s high), 1955 (June 9th’s high), 1949-1950 (3 data points), 1947 (June 9th’s low), 1940-1944 (7 data points), 1939 (June 18th’s low), 1937 (June 13th’s high), 1933 (June 17th’s low), 1931 (20 day moving average), 1924-1928 (5 data points and May’s high), 1922 (June 5th’s low), 1918 (2 data points), 1915 (June 2nd’s low), 1897 (April’s high), 1895 (50 day moving average and the bottom of the Bollinger Bands), 1883 (March’s high), and 1868 (100 day moving average).

S&P 500 Daily Momentum: Bullish
S&P 500 Daily Overbought/oversold: Neutral (leaning overbought)
S&P 500 Weekly Momentum: Bullish
S&P 500 Weekly Overbought/oversold: Neutral (leaning overbought)
S&P 500 Futures: Positive
Overall: I would expect a large move today, due to quadruple witching. The early indicators are positive, but don’t be surprised if we finish in down territory. Expect the unexpected today (which is really one of the silliest cliches ever made, but it does apply).

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26 responses to “Traders Corner

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  1. I put in a limit buy for July 11 27.50 calls. My first covered call. Its .2 so not much.

  2. Bought back my FEYE weekly calls. Sold 35 calls expiring today for 3.36, bought back for 2.40 for a profit of .96 40% Bought the stock at 38.24. Reduced my basis to 37.28. I’ll sell next weeks calls again. Have to see how the day progresses.

  3. Anyone have any thoughts on UGA? I’m thinking the price of gas hasn’t kept up with the price of oil. If oil continues higher gas will have to move up and eventually reflect the higher oil price. Doesn’t have much volume but may not be a concern since it follows the price of gas.

    • Trader, UGA is too politically dependent for me. Events in Iraq may be the primary driver for this transaction? and I don’t have a crystal ball? Seems a little like a roll of the dice?

      I do have some cash freeing up today and I’m looking at joining you on FEYE next week.

      • Sold next Fridays 35 calls on FEYE for 2.70. This is a very small position since this is a different approach to covered calls then I normally use. So far the experiment is working. I’m looking to trade the options around the core position. As long as the volatility continues without a big drop in the stock this should work. If you decide to trade, one thing to watch is the bid/ask price. The spread is large. I would use limit orders and enter an ask price quite a bit higher than the bid. You can always adjust if it doesn’t fill.

        I’m not finding much of interest at the moment. Looking for different ways to use my tools.

      • Bought back the options for 2.00 for plus .70 35%. Didn’t expect this to be a 40 minute trade.

      • you made 35% in 40 minutes? guess we need to drink Seattle’s bourbon at your soon to be beach side house!

      • Sold next week 34 calls for 2.80.

      • Do we have to invite w-seattle or could he just send the bourbon?

      • Trader, if you want the good bourbon, then you have to invite me. If you want the stuff that may be suitable to degrease a chain, then I am willing to ship.

      • PS nice work on the calls. These super quick trades are good for you. I get worried you’re going to forget your trades if they take too long. 🙂

      • w_seattle, the cheap stuff is good enough for me. I was well trained when I was in college. You don’t have to worry about me forgetting my trades. I write them down as soon as I place them. Of more concern is remembering where I wrote them.

    • Trader, I have read gas stock piles are at a 28 year high. Even with the $5 jump in oil gas at the pump has gone up little. I noticed .03 yesterday, in past its gone up overnight.

  4. Sold July 13 calls on TSL for .75. Bought the stock on 6-16 for 12.80. If called my profit will be .95 7.9% for a little over a month.

    • I am rooting for both of us on TSL. My call date is September though.

      • It looks like it may trade flat for a while. If that does prove out, I’ll let the time decay work on the options and look to buy them back and profit there. If I get called out, I’m good with the profit.

  5. I’m seeing an interesting technical divergence in the SPY and IWM. Daily technicals are not supporting this move up in the S&P. The small caps show the technicals moving up with the move higher over the last several days. I think we are going to see a few down days at the first of the week. If we do move down, there is no way to know the size of the move. At this level, we may see a few hundred points on the Dow and then the talk of a correction will start all over again.

  6. OIH is blowing it out today. volume is running higher than average which is a good sign, but it is starting to look overbought on the charts. I’ll be called out again on this one for 1.2%. I may have given up some of the gain, but what’s more important is sticking to the strategy, being consistent, and making money each time. I’ll see what Monday brings and keep updating.

    • Well done. This is not a market to get greedy. By the way, nice move on silver.

      • Thanks Trader and Jeff. Trader nice work to you as well, which is par for the course for ya! Speaking of which have you hit the links lately? Just played a real nice course with a few friends last week up in Wisconsin. Thankfully my putter was on fire, because the rest of the bag would have played better from the trunk.

      • I’ve been playing a lot. Rained all week so I’m itching to get back out there. Going to be the first one out on the course tomorrow.

    • good work M.

  7. I sold NSR at break even. I’ll look to buy it cheaper if we do pullback. Maybe wrong, but I don’t like what I see.

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