- No trading activity
(Click on image to enlarge)
McClellan: -24 (neutral)
Stocks above their 20 DMA: 57% (neutral)
No man's land. Not the ideal time for adding individual Credit Spreads. I will keep waiting for an extreme for the time being.
Yellow lines represent current positions. Except the May31 Calls, everything else looks comfortable.
May31 SPX 2125/2150 Credit Call Spread
SPX 2150 Long Calls & 1885/1890 Credit Put spread
. This position is coming to an end anyways, possibly late this week or next.
June30 SPX 2200/2225 Credit Call Spread
6 deltas only. Looking comfortable. This position resulted from an adjustment so I'd like to squeeze out as much profit as I can out of it. No immediate plans to close it for now.
July29 SPX 1650/1675/2200/2225 Unbalanced Iron Condor
Call side much better now at 11 deltas. Looking to close it early at or 6 or 7 deltas and around 50% or 60% of max profit to alleviate upside risk in the portfolio, which is still more than I like.
July SPY Long 169 Puts
August SPX 1750/1760/2250/2260 Unbalanced Iron Condor
Looking good, 11 deltas on the Put side, only 6 on the Call side. Planning to close the Call side early for 0.20 debit, which may be possible if SPX goes down to 2010-2020.
Action Plan for the Week
- If SPX rallies beyond 2,120, close the May31 SPX Credit Call spread for a loss and deploy a new May31 Credit Call spread at 2,200. At the same time, we would be closing the SPX 2150 Long Calls & 1885/1890 Credit Put spread to mitigate those losses.
- Close the July29 Call spreads for 1.10 debit or so, if they reach 6-7 deltas. This should be possible with a simple 1% drop.
- Close the Aug31 Call spreads for 0.20 debit. This could happen with SPX falling down to 2010-2020.
- Sell June RUT Credit Put spreads if we reach an oversold extreme condition, a 2.5% or so from current levels. RUT has looked more oversold than SPX all year. Regular June exp, 960/970 could easily reach 10 deltas and it would be my choice.
- Cash gains on long SPY July Puts on an 80%-100% ROI shall the markets fall significantly.
- Sideways action = do nothing.
First week of the month, always with potential to generate more activity and larger moves.
Monday: German PMI, Europe Manufacturing, US ISM Manufacturing PMI, ECB President Draghi speaks. China's Manufacturing PMI
Wednesday: ADP Employment change, ISM Non-Manufacturing PMI, Crude Oil Inventories
Thursday: A bunch of FOMC Members speak at 7:15 PM New York Time
Friday: Non-Farm Payrolls, Unemployment numbers.
Options Trading results - Closed positions (trading costs included), we are down 2.64% for 2016. The S&P is up 1.05%. The portfolio is currently 67% invested, 33% in cash. Some decent credit accumulated to overcome the losses and more, and current positions feeling comfortable. No alarming threat at the moment.
Forex Trading results - Up +1.33% for the year. Four closed trades in total so far: 1 win, 1 loss in EURUSD and 1 win, 1 loss in XAUUSD. Will go Long EURUSD and XAUUSD (Gold) today as soon as those markets open.
Good luck this week my friends!
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