2/17 Almanac

Wednesday, Feb. 17, is 2 days before February options expire, 30 the March and 58 the April.

Blue chip stocks (SPY) closed the latest regular session at $109.74, up 1.6% from the prior close.

In total, 3.1 billion shares were traded on the three major U.S. stock exchanges. That's about 11.4% fewer than the prior day.

Mediawatch: No strong narrative today, so reporters fell back on a portmanteux. I was especially struck by the AP headline, which credited stocks' gains on "earnings, deals and hope." Those, of course, are the Three Virtues as practiced on Wall $treet. Elsewhere, they're known as Faith, Hope and Charity.

On the jump, rules, econ reports, portfolio, tasks ahead and a good book...

My rules allow trades today in March iron condors and covered calls, along with butterfly, calendar and vertical spreads. I allow myself to trade unhedged call and put option purchases that expire in April or later. These economic reports will be released: The government at 8:30 a.m. Eastern releases the latest on the number of residential buildings where construction has begun. An indicator of a return in housing demand, if it rises, with results that would spread throughout the economy. Industrial production, released at 9:15 a.m., shows the pace of manufacturing, another key measure of confidence. The Federal Open Market Committee at 2 p.m. released the minutes of its last meeting. Sometimes, although rarely, these contain nuggets of marketing-moving import. The Treasury Department, also at 2 p.m., reports on the federal deficit. An indicator of borrowing needs, so a potential impact on interest rates. The main impact, however, is political.

"Is buying stock investing? Or is it a speculation -- a bet?" Long-term investor Stanley Mazor tries his hand at market gambling with a technique he calls Turning on a Dime.

My portfolio consists of . . .

February expiry:

• CVS, iron condor, p28/-p31/-c34/c36
• ERTS, iron condor, p15/-p16/-c18/c19
• MCO, covered call,  s/-c30
  
• PALM, covered call, s/-c13

March expiry:

• CSCO, iron condor, p22/-p23/-c25/c26

Good trading!

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