During options expiration week at PSW, we often enjoy a little day trading as the premiums get lower and we can get great leverage for little commitment.
Here are Phil's morning Alerts and comments to Members in a wild 2.5 hours of trading this morning, making money in both directions:
Phil - June 17th, 2010 at 9:37 am |
Wow, look at WGO! Brilliant call by David!
Same old levels to watch but now it would be TERRIBLE to lose any of them: Dow 10,250, S&P 1,100, Nas 2,260, NYSE 6,820 and Russell 666. We really want to see NYSE 7,000 to get a little more comfortable (now 6,993).
GLL July $37 puts can be sold for $1.20, I like that play on gold going lower.
AAPL is up at the $270 mark where they make a temping short but I’d rather short the Nas with the QQQQ July $46 puts at .85 as it’s not as likely to kill you as AAPL is!
Major data at 10 am so we may give up on shorts as quickly as that - mostly just protecting our gains.
Oh yeah, DIA Matress play (Sept $105 puts) can now be naked until we cross 7,000 on NYSE.
Phil - June 17th, 2010 at 9:50 am |
Whee already! Nasty momentum if our 10am reports suck…
AAPL June $270s can be sold for $3.10, 5 sales for $1,550 and buying 3 July $280s to cover at $6.75 ($2,025). If AAPL goes higher, you have to buy 2 more July $280s and roll into a vertical with the $290s.
Phil - June 17th, 2010 at 10:03 am |
Philly Fed was TERRIBLE!!! 8 down from 21.4 - total disaster, LOVING THE SHORTS! No need to have the July AAPL calls, naked short calls should work.
Oh well, they are using AAPL to prop up the Nasdaq at the moment. Now spread is $7.35 for the July $280s and $4 for the short June $270s - still very nice but scarier looking!
TBT/RMM - They are always a buy below $40. $38.50 seems to be the new floor and I do like selling July $38 puts for $1.
Phil - June 17th, 2010 at 10:37 am |
I’m done with short plays here. Not going long but that’s a lot of money already and I’m not greedy. We’ll see if we hold this 1% dip first.
Phil - June 17th, 2010 at 10:41 am |
QQQQs hit $1.05 so tha’ts very nice, GLL I still like, AAPL I’m willing to be naked short on the $270 calls but now a stop if AAPL gets back over $270.50, TBT right on our floor (hopefully).
DIA Matress should be 1/2 coverd with July $103 puts at $2.30.
Phil - June 17th, 2010 at 10:57 am |
Staws/Kinki - No camels backs are broken yet. This is a two hump market and we just dipped between them. We expected a 1% pullback to the 5% line after a 6% run - perfedctly normal. The reasons don’t matter that much in this case.
Now I like TNA $47 calls at $1.20, stop if RUT fails 660.
Phil - June 17th, 2010 at 11:30 am |
Copper/Dez - Good point, took a nice bounce off $2.90 and makes a tempting long here!
Actually, that’s a good idea. Copper futures (/HG) at $2.9085 with a stop at 2.8890 - keep in mind copper is $12.50 per .0005!
Phil - June 17th, 2010 at 11:54 am |
Done with TNA at $1.60 - just scalping dimes today.
Phil - June 17th, 2010 at 12:08 pm |
Oh, copper stopped out of course, bounced back off $2.92! - Another reason to stop being long again.
Disclosure: Positions as indicated but subject to change.