Redirected to SPY dividend. I continue to monitor the correlation between the 2004 values of SPY v.s. the 2010 version. The summer of 2004 was a sideways, slightly declining market and the summer of 2010 seems to be following suit. I was curious how the US treasury interest rates between the two periods compared, so I looked up some data. The yield …
UPDATE — redirected to blog On the chart below you can see that using the slope of the 2004 SPY trendlines anchored on the February 2010 market bottom gave a 2010 bottom trendline that nicely predicted the bottom (or at least a pause) in the recent correction. The big question now is the top trendline. Of course there is nothing to say that 2004 …
I bought SPY at 111.64, and sold-to-open SPY 108 June-30 expiration calls at 4.08 for a net investment (debit) of 107.58. I used the quarterly SPY options because I could go considerably deeper in the money with the calls and still get a premium that is close to the likely SPY dividend for this quarter (around $0.50). Schwab does not appear to …
Bought SPY 109 July calls (17-July expiration) at 2.90.
Although recent intra-day lows have crossed the 2010 trendline in the graph below I hallucinated in February we haven’t had a SPY closing yet that has crossed that line (104.87 for 9-June-2010). My crystal ball has been notably hazy recently, but I’m still thinking this is a correction and not the beginning of a bear market. I continue to be bearish on the prospects …
