There are 22 days before the last trading day for May options, 50 the June and 78 the July.
On the jump, market stats, econ reports, rules, my holdings and a good book...
Stats
Blue chip stocks (SPY) closed the latest regular session up 1.2% from the prior close. During the day SPY traversed 0.9% low to high in a net move up intraday of 0.6%.
Today's extremes: Open $120.10, high $121.11, low $120.07, close $120.8.
SPY closed above the range of the DeMark pivots. The next DeMark pivots are $120.47/$121.51.
In total, 4.4 billion shares were traded on the three major U.S. stock exchanges, 300 million more than the prior trading day.
Econ reports:
The Big Beat of econ reports, gross domestic product, will be out at 8:30 a.m. Eastern. It gives the broadest view of the economy's growth. (Also, the laggingest; it's released quarterly and revised based on later data.)
Also at 8:30 a.m., the employment cost index, telling what its takes total to employ a worker, wages and benefits. It's supposed to be an indicator of wage inflation, a fairly low risk proposition these days with so many people out of work.
The Reuters/University of Michigan consumer sentiment survey, at 9:55 a.m. Consumers have to be the most prodded and poked class of people in the universe. I wonder if that's in line with the new reality? If we are in fact moving to a high savings rate, then the consumer becomes less of a factor in the economy, no? The Post-Consumer Economy. You heard it hear first.
Rules:
By my rules, at this point in the cycle I can trade May covered calls, May diagonal, butterfly, and calendar spread, both May and June vertical spreads, and July single calls or puts. Shares, of course, are good anytime.
My Holdings
May expiry:
- BBY, bull call spread, c44/-c45
- CIEN, bull call spread, c18/-c19
- GE, bull call spread, c18/-c19
- QQQQ, bull call spread, c49/-c50
- UNP, bull call spread, c75/-c80
Dividend shares: JNK, NLY
Special situation: PALM
Zombie shares: MCO
Good trading!
Options as a Strategic Investment is a one-stop source of practical information, clearly presented, about the the trader's most important tool for managing risk. This book occupies an important place on my desk.
New to private trading? Here's a look at How to Become a Private Trader.
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