Market Overview:
It just keeps going up. I'm not sure how long this can last. I was expecting a pullback last week. It didn't happen and I got hammered. I expect it to be a volatile week as earnings season gets into full swing. For Tuesday, I think the market will reverse on whichever way it opens. If we gap up on the open, then I think it corrects back down towards Friday's close. A gap down will likely see "bargain hunters" come in and start buying.
SPY Options Trading:
I got crushed on my short weekly 128 calls position last week. I'm still holding 22 Jan 2011 126 calls short. I'm way down on that position. If the options don't get assigned before expiration, then I'll look to close out my position if SPY retests 128. I piled into long Feb 127 puts on Friday. I kept buying more as the market kept rising. My plan with these is to "go to war" with the market. If the market goes up, I'll buy more. I think (hope) that the market will pullback at some time between now and expiration.
Key Levels in the SPY:
Resistance: 129.33
Support: 129, 128.80, 128.60, 128.20, 128
Individual Stock Trading:
GLD -
If gold continues to sell-off this week I will look to sell some weekly GLD 130 puts. There should be strong resistance at 130.
AAPL -
AAPL reports earnings after the bell on Tuesday. I expect them to completely blow out earnings. However, the stock has had a huge run ahead of earnings, therefore I think the upside is limited. If I have enough capital to do so, I will look to sell weekly 355 or 360 calls on Tuesday.
No comments:
Post a Comment