[Weekend Summary]
Dear Member:
Oil continues to have a major impact on the markets. As the price of oil dropped today, stocks were up about 1.5% for the day. Over the week, the indexes were mixed with the Dow managing a modest gain to hold just above some support. The Nasdaq Composite dipped a little for the week while also finishing the week at a support/resistance level. The S&P 500 was essentially flat after closing back above the 1350 level.
I did a little adjusting during the week, creating spreads against existing positions in Knight Trading (NITE) and Cognizant Tech Sol (CTSH)to bring in income and try to reduce risk in the underlying positions -- long calls in the case of NITE and long puts in the case of CTSH.
I also closed short legs on SPY to grab a quick 20 cent a share profit on the Jun Q2 145 calls and a 24 cent a share gain by closing the short Jan 25 call leg of my spread there. Each of those amounts before a small commission. I remain in the long 140 Dec calls on SPY and the long Jan 2010 $20 calls on Citigroup (C).
Nothing much went on with the straddle on Stec, Inc (STEC) where I am looking for an implied volatility spike or a sharp price movement. That is not unusual for straddle positions which can take time to develop.
Sirius Satellite Radio (SIRI) had a strong day Friday and I am holding onto the Jan 2.50 calls for either a price gain or a turn where I can create another spread to bring in even more income.
Have a wonderful weekend and thank you for subscribing.
Bill Kraft
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