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Saturday, May 28, 2016

Weekend Portfolio Analysis (May 28, 2016)

Writing to you today from Chicago, home of the CBOE, home of the vice.
I've been here since Thursday. Very low key, using public transportation and staying at an AirBnb room. National tourism is so much more affordable in the US. Flying Miami to Chicago was only $143 after all sorts of taxes and fees. And that's a two-way ticket. There were even tickets for just $80 bucks last week. In Canada, flying from Toronto to Vancouver was $1,200 to $2,000. Those communist bastards.

The city of Chicago has been impressive. And yeah, I know, locals are probably sick of it, relatively high crime rates, and I bet there is someone, somewhere right now writing an article about "Why Chicago sucks". BS. Chicago is a magnificent city and it ranks very high up there in my personal taste. No offense, here's my ranking:

1- Chicago
2- Toronto
3- Miami (perfect weather + silicone implants)
4- New York City (Yes, too crowded and overwhelming for me)
5- Montreal
6- Ottawa (Ottawa sucks big time)
99 - Havana (makes Ottawa look like paradise)

But wait. This is not LT's touristic aspirations?! This is not The-Lazy-Tourist!?
After that lengthy, Kardashianesque introduction, let's get our market fix, shall we? Let's get to our addiction.

Market Conditions
(Click on image to enlarge)
Stochastics: 95 (overbought)
McClellan: +63 (neutral)
Stocks above their 20 DMA: 69% (neutral)

No man's land, getting close to a short term overbought extreme. A one or two percent push higher would get us there and then I would be a very happy seller of the August 2250/2260 SPX Credit Call Spread to create an Iron Condor with the existing 1760/1750 CPS.

Current Portfolio

July SPY Long 169 Puts
Portfolio Insurance.

August SPX 1750/1760 Credit Put spread
Good boy. Just 5 deltas. I'd gladly close it for 0.15 debit (current price is 0.30)

September SPX 1825/1800 Debit Put Spread + 1625/1600 Credit Put Spread
Portfolio Insurance

June SPX 1875/1865 Credit Put Spread
Easy peasy.

July SPX 1890/1900/2175/2195 unbalanced Iron Condor
The position that was initiated this week. No threats at the moment, 7 weeks to expiration. 

Action Plan for the Week

- I'm willing to close the August 1760/1750 CPS for 0.15 debit. GTC Order already in place.

- If we reach an overbought condition, I will sell Credit Call spreads, probably SPX, probably August to take advantage of the existing CPS and not consume extra margin.

- If the market falls, I won't do anything.

- If the market moves sideways, I won't do anything.

Economic Calendar

Monday: Memorial Day
Tuesday: US Personal spending and Consumer Confidence. China's PMI
Wednesday: Europe PMI. US ADP Non-Farm Employment Change. Manufacturing PMI
Thursday: Crude Oil Inventories
Friday: US Non-Farm Payrolls, Unemployment Rate

Options Trading results: Up +0.89% YTD vs S&P up +2.70%. Portfolio 60% invested, 40% cash.
Forex Trading results: Down 0.01% for the year. No position at the moment.

Have a nice week folks!

If you are interested in a responsible and sustainable way of trading options for consistent income with solid risk management, consider acquiring LTOptions, my options trading system to the last detail.

Check out 2016 Track Record

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