[Weekend Summary]
Dear Member:
Volatilities steadied a bit toward the end of the week and I saw a few more equities begin to give some bullish signs. The Nasdaq enjoyed a very slight gain and the Dow and S&P 500 experienced relatively light losses. Both the latter have come down from head and shoulders patterns on the weekly charts and rested near levels of modest support by Friday close. There is still no clear indication in my mind that the bear is finished, but there seems to be a more bullish feel (however slight) than there has been in the recent past.
Most of my activity this week was in Option Trader where I bought some LEAPS calls on Citigroup (C) early on and then sold some calls against that position on a little reverse to bring in some decent income, reduce risk and set up a long term bullish call spread. I should note that simply because a position has a far out expiration does not mean I won't trade it well before the expiration.
I also created another spread against my Dec calls on SPY and brought in some income there as well. I also opened a new condor on SPY with potential to realize a 44.9% return on my risk in just 3 weeks.
The condor on the Russell 2000 (RUT) is also still in very good shape with no present need to do any adjusting.
The Sirius Satellite Radio acquisition of XM got Justice Dept. approval and that shouldn't hurt my long term spread in SIRI which, for now, at least, is doing well.
Have a wonderful weekend. Thank you to those who have purchased my book and thank you for subscribing.
Bill
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