Quick Options Strategy Review
The High-Probability, Mean-Reversion Options Strategy reaped another gain today. The successful trade pushed the strategy to a new high – +43.1% since its inception eight months ago. You can see the performance results for the High-Probability, Mean-Reversion options strategy here. The success has been incredible so far and I am nearing a limit to my newsletter. If you are indeed interested in my service please sign-up now to secure I spot. I want to keep a cap on subscribers for various reasons including manageable service and more importantly, keeping volume at a reasonable level on the options I choose for my trades.
Market Mumbo Jumbo
The market gapped significantly lower at the open on news that the Obama administration and the IEA were going to dip into the Strategic Reserves. The global effort would add 60 million barrels to the market, with over 30 million barrels coming out of the United States. It is the first time since Hurricane Katrina and only the third time the IEA and the U.S have joined together to release barrels to market.
The announcement helped to push oil and oil related stocks significantly lower. That is, until late in the afternoon when news that Greece would be rescued by the EU under a five year austerity plan. The market spiked higher after the news and as it stands the futures are higher. The bulls are back, but for how long?
Options Indicator – Overbought – Oversold
None of the ETFs I follow in the High-Probability, Mean-Reversion Indicator have moved into a short-term extreme.
Same message: Not much has changed over the past few weeks - range-bound trading persists. I appears we could see the markets move sideways for a few more months. Are the summer doldrums already upon us? How long can SPY stay in this range of roughly $126 to $137? The question is, while I continue trading extremes in the HPMR strategy , how can I take advantage of the range bound movement at the same time. You guessed it – a credit spread!
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.