[Weekend Summary]
Dear Member:
I hung onto the puts on QQQQ because of the drop following the higher open today and the fact that they were down on higher volume. A drop on higher volume is often a bearish signal. The Diamonds (DIA)and XLK showed the same pattern so I did nothing with my 113/114 bear call spread on DIA or the longer term bullish call spread on XLK.
The SP-500 and its' tracker SPY stopped at a resistance so there was no need for me to any adjusting on my diagonalized calendar spread where I am short the Jun 130 calls and long some 120 LEAPS calls. I definitely don't want to be called out at 130 so if SPY moves up next week, I'll be buying back the short calls. A similar scenario exists with the Biotech Hldrs (BBH) where I am short the Jun 180 calls and long the '07 200 calls. BBH closed today at 179.01. With option expiration next week, time is on my side.
Sirius Satellite Radio (SIRI)had a nice move up this week and has taken a breather over the last couple of days, but it looks like the bears have had some trouble pulling it down. A close above $4.60 on strong volume would look bullish to me.
Conoco Phillips (COP) looks like it is heading back up. I have an August straddle on it and as the time gets shorter until expiration I'll be watching the stock's pattern quite closely. Micron (MU) is still trending up and with lots of time on my bullish call spread, there isn't anything I want to do.
I'm not sure whether Thursday's jump was a head fake or not. As has often been the case, we have a close on Friday that definitely leaves doubt about market direction. If it moves up sharply on Monday, I'll at least be adjusting my bearish positions. If not, I'll just go with the flow.
Thank you for subscribing and have a great weekend.
Bill
|
