[Weekend Summary]
Dear Member:
Volatilities as represented by the VIX, VXN, and VXO dropped off sharply as the markets ran up in response to the Fed lowering an important interest rate a somewhat surprising 1/2 point.
The Nasdaq Composite Index rose nearly 70 points for the week and is approaching the 2725 level where it would enter territory not seen since the latter part of 2000 and the early part of 2001. The SP-500 was up strongly as well as it heads for the July highs. 1550 looks like the next magic number for the S & P. The Dow Industrials are pushing toward the 14,000 mark they hit in July.
I bought some in the money LEAPS calls on Nvidia (NVDA) which looks like it may complete a reverse head and shoulders. Shortly after I opened the NVDA trade, I sold my LEAPS calls on Qualcomm (QCOM). The QCOM trade turned out well as I captured an 80 cent a share profit before a small commission resulting in a 6.3% in an 8 day trade.
I was also able to sell some 47.50 calls for $3.10 as a covered position against my long 45 calls so that my risk in the long position was substantially reduced. As those who have subscribed for some time may recall, I have adjusted this position several times and it now looks like I may be successful in turning the trade profitable by expiration.
If SPY can stay above 150 until expiration, I will achieve the maximum on this spread without further adjustment. The Sirius Satellite Radio (SIRI) is also in decent shape with plenty of time to go.
I am down in my put position in the QQQQ, but it looks like I can sell some higher strike puts against my long position and either reduce risk or maybe even turn the trade profitable ultimately.
Have a good weekend.
Bill
|
