With 12 days remaining to expiration all filled trades are out of the money but have to be closely monitored these next 2 weeks. One or more of the SPX and NDX Bull Put trades will need to be adjusted if the market continues to drop. Last weeks drop completed a 10% market correction that many projected the market needed when it was making new highs week after week. Now all the indexes are very oversold. The major event next week is the Fed meeting. Their action (lower rates) and comments will influence investors to buy or sell. I wish they would start lowering interest rates help the struggling housing market and mortgage industry.
Last week the RUT Index price was 27 points away from our short option, and 17 points from our stop loss price. This is why I sent a Trade Alert last weekend detailing the adjusting trade that closed this spread and opened a new 20 Point RUT Bull Put spread expiring in September. I received emails from many subscribers who completed these trades. I have also received emails from subscribers who have not rolled this trade. I have new September RUT trades to roll to this weekend so please send me an email for the details. The RUT index is already 10% down and is very oversold so the Bull Put is a safe trade. But so is the Bear Call.
GOOD NEWS !!!! The MSFT Put option trade is still very profitable now. These 27.5 Put options have a bid of .16 cents. These options brought for $2, or $3, a contract earlier this month can be sold next week for $16 a contact.
I am only researching Bear Call spreads this weekend and next week. I hope many subscribers had last weeks very safe NDX 25 Bear Call spread filled. The RUT and SPX Bear Call spreads expiring in August are on my watch list could be good candidates later next week.
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