Looking for a correction
I bought SPY 113 April puts this morning at 1.89 when SPY was trading at about 114.65. I think the next major market move will be a downswing.
SPY
Trading range, break-out, or double dip–some patience required
I have been not so patiently waiting for the market to pick a direction. I have been surprised at the strength of the rebound from the lows a month ago–we are less than a point away from SPY setting 15 month highs. My gut is still telling me we are in a trading range similar to 2004 and 1999 after big bull run-ups, …
S&P500–going for another date/price match between 2004 and 2010?
The surprising date / value / normalized volume correlation on the S&P 500 between 2004 and 2010 continues, with the 3rd of March SPY closings only differing by 3%. If 2010 continues to track 2004 then we should see an ongoing ramp in trading volume, with a 30 day moving average of around 300 million shares per day on SPY, compared to the current run rate …
Out of Oil and SPY
My USO position and my remaining SPY covered call positions were called this weekend, so I’m back to about 90% cash. Despite the scary stuff in the last couple of weeks, they ended up yielding their maximum profit potential. Oil looks expensive right now, so I wouldn’t be surprised to see a pull back there. The S&P 500 could certainly go higher with this …
February SPY close-out
I closed out my SPY Feb 111 buy-write position a little early today. It would have probably closed in the money, but I didn’t like the way the market was behaving for a position that was only a few tenths in the money. Sold SPY at 111.23 and bought back the calls at .36 for a net credit of 110.87. Overall profit was 2.44 …
