[Weekend Summary]
Dear Member:
As we approach the "summer doldrums" the Dow and S&P 500 are dealing with a support/resistance line first begun last November and the Nasdaq Composite has been unable to get back above the important 2500 mark since the beginning of January. Meanwhile, volatility has climbed modestly this week. As I have written before, patience is critical at times like these and the rewards are evidenced by a $10 Trader trade I closed this week where I was able to achieve a 40% return in just a little over a month. The key, I believe, is to continue the hunt for good candidates with good entries.
The condor on the Russell 2000 (RUT) has stayed between the short legs which is good and no adjustment has been necessary. There is now less than a week until expiration so the odds look good that this play will close with a profit.
After zooming to resistance, Cognizant Tech Sol (CTSH) gapped back down and has brought my puts back to near break even.
It is looking like the calls I sold against my long call position on SPY will expire worthless which is exactly what I want and I will either let that happen or roll out to the next month to bring in additional income and further reduce the risk in the long leg.
With plenty of time to go on the spreads on Citigroup (C) and Sirius Satellite Radio (SIRI), there has been nothing to do there and all is well for the time being.
I am looking at a possible bear call spread on EXM next week and will, quite likely, open a June condor on the Russell 2000. In general, when things are range bound, condors can work quite well to provide a high return in a short time.
Have a great weekend.
Bill
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