Trade
slows, spreads widen as many leave early for the holiday. I was on
the right side of the stock market (bullish), but I often wish I was
more aggressive with the market moving higher and volatility moving
lower like the tide on the beach.
A few posts ago, I wrote about a
possible market top (link). The transports IYT made a new high today. The
local Investors Business Daily CANSLIM meetup only had about a dozen
people. If this was a bubble market, there might have been 100 people
at the live meeting to talk stocks. So no top yet. Many will want
technical confirmation, with a break of the 200 day moving average.
In
observance of Memorial Day, here is a Youtube link to Trace Adkins
performing Arlington (link2). Highlights for this week include new
positions in Nordstroms JWN and Dillards DDS.
Here is the recap:
Thu
Sell IWM Jul 94 puts @110.8. I rebalance my short strangles on the
Russell 2000 etf. I call these mechanical trades, because I am
targeting a certain delta.
Sell
DIS Jul 72.5 puts @82.5. I open a July position in Disney. DIS is one
of my better trading stocks for 2014, so I want to stay with it.
Sell
VRX Jul 95 puts @131.4. Similar deal for Valeant Pharma. I open a
July position in one of my winner stocks for the year.
Wed
Sell KORS Jun 75 puts @93.0. Michael Kors has earnings out next week
on the 28th. I open a position way out of the money. Two other high
end retailers, Nordstroms and Tiffany, reported strong earnings.
Tue
Sell JWN Jun 62.5 puts @67.1. Nordstroms had a good earnings report
last Friday and is pulling back a bit. Chart support around the 62.5
strike.
Sell
GLD July strangles @124.8:
Sell
GLD Jul 113 puts / Sell GLD Jul 137 calls
Again,
selling strangles is a bet on a trading range. I am already short
June strangles. Option premiums are tiny vs. the capital needed for
these trades, but I have a lot of buying power and not that many good
ideas at the moment.
Mon
A lot of capital is freed up with option expiration, and I put
some to work.
Sell
IWM July strangles @110.0
Sell
IWM Jul 91 puts / Sell IWM Jul 120 calls. These are way out of the
money, so premiums are tiny, probabilities of profit in the 93%
range. I already am short layers of June strangles on the Russell
2000 etf.
Sell
EPI Jul 19 puts @22.1. Rally keeps going in India's stock market, EPI
is an India stock etf. I add to longs with a July position. Again, it
is extended, the base for the breakout is 19.
Sell
AZN Jun 60 puts @71.8. Astra-Zeneca rejects Pfizers take over bid,
stock moves sharply lower. Call premiums remain elevated, so some
believe another company may make a bid or something else might go on.
The 60 level is two support levels lower. Stock is holding up well
intra-day.
Sell
DDS Jun 95 puts @109.1. Dillard broke out on earnings on Friday.
Chart base is 97.5.
Position
Summary:
long
AMGN ASH BEAV CNX DAL DDS DIS HON JWN SLB VRX
net
long AAPL APC GLD IWM SPY
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