[Weekend Summary]
Dear Member:
Certainly a less than inspiring week for the bulls though I was relatively pleased in my own trades in my Trend, Option and $10 services. While volatilities moved back up, the Dow and S&P 500 each turned down from triple top resistances while the Nasdaq did the same from a double top resistance. Each of these major indices broke down through the shorter term up trend lines. For now, important resistances are around 2400 for the Nasdaq, 12,750 on the Dow and 1400 on the S&P. Until then, the bull is not on the rampage.
Not surprisingly, with the market direction, Option Trader was the most active of the services this week. I closed the bear call side of the April condor on the Russell 2000 (RUT) and have retained $2.15 of my initial $2.90 credit on that play. I may well spend a little more early next week to close the bullish put side to try to assure a nice gain overall. So far, the put side is not in evident short term danger and time continues to run on my side with a Thursday expiration next week.
I also opened a May condor on RUT for a whopping $4.60 a share credit. If I can hold onto the initial credit until expiration without adjustment, it could result in an 85% return on risk in 5 weeks.
Though I was unsuccessful in closing the whole condor on the S&P 500 (SPY), I did get the call spread side closed for just a nickel debit. As with RUT, the put side looks relatively good with only a week to go until expiration I have a decent chance of closing this one for a profit as well.
Speaking of SPY I closed the short leg of the calendar spread and made 19 cents on that leg. I also closed the short leg of the Sirius Satellite Radio (SIRI) spread for a profit. I am still holding the long legs that expire in Dec for SPY and in Jan '09 for SIRI.
Watson Pharmaceutical (WPI) hit a high for the week on Tuesday and then went into a little trend in my direction (down) for the rest of the week. It looks like it is still deciding what to do, but for now, I am satisfied with my relatively cheap longer term out of the money puts.
Have a great weekend.
Bill
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