Will the rally last?
Did a covered call on SPY using a combo order. Bought SPY at 119.83, sold-to-open April 120 calls at $0.70 for a net investment of 119.13.
SPY
Dividend Capture Strategies
In trying to capture dividends there is no free lunch. In fact, since Wall street is involved, the best you can hope for is an affordable lunch. I have looked at, and tried quite a few approaches—most of which don’t work, but I have found one approach that does work with some ETFs. Ironically you don’t actually collect the dividend most of the time, but …
Betting on the bear
I put a bear spread into place on SPY, selling April 100 calls at 8.10 and buying April 108 calls at 1.30 — net credit of 6.80. Worst case loss is 1.2 per call pair, best case profit is 6.8 per call pair.
Time for divergence from 2004?
Looking a the chart below you can imagine this year’s stock market getting back on the 2009 trend line, leaving the 2003/2004 correlation behind. But I’m still betting that the market is in a sideways mode, rather than a continuing raging bull. The most notable change in the curves since my last update on the 18th of March is the big drop in normalized volume–something …
Where have all the sellers gone? Is fear in cash?
This bull run has been going on since the 8th of February. A very long time without a correction in these uncertain times. In watching the market action I have been surprised at the down days. In-spite of the late January scary correction and market shocks that I would expect to send the S&P 500 down a percent or two, the market has shown remarkable …
