[Teddi Knight]

Teddi,

I was suprised that you started selling the Mar20 SPY puts that you bought at 1.33 at 1.51. From the posts this morning (pasted below) and since you bought 20Mar puts instead of 6Mar or 13Mar, I got the impression that you were going to hold on to them until SPX dropped to around 2075. I guess the clue was that this was a Trading for Pennies type of trade was in the trade alert when you said “I will be trading these.” I almost entered the trade when the puts were down to 1.30, but I am glad that I didn’t since I was not clear on the concept.

Jack Follick

————————————————————————-
“I’m sure we will see a rally in the afternoon but to turn positive and hold it could be tough. That means a move to the downside to 2075 is probably 70% likely versus 30% likely stocks can stay above 2100.”
————————————————————
Since that would appear to be the case, buying some spy puts this morning is not a bad move and I will picked up 50 $207 put contracts for March 20 expiry in the next rally. I will be buying in lots of perhaps 10 or 15 put contracts each time just in case the market can get back to the 2100 level.

As discussed this morning in the morning Intraday Chart Analysis article which you can view here I bought 10 spy puts for $1.33 at 12:31. I hope to pick up a total of 50 but I want to be sure on the direction down for the next couple of days and I want to scale in in case the S&P pushed above 2100 before moving lower. Above 2100 I should be able to get into the $207 Mar 20 puts even cheaper. I will be trading these. This is not a giant drop coming or a collapse. This is just weakness while the market prepares for the next move higher.

[Teddi Knight]

Very interesting Mary. I had not thought about looking at monthly candles and going back pre-2007. Thanks for posting the attachments.

Jack Follick

[Teddi Knight]

I prefer the chaikin money flow over money flow index

[Teddi Knight]

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[Teddi Knight]

I missed your exit point. I had to take the dog out for a walk before the rain starts. It looks like 2100 is resistance so I will likely hold the puts going into tomorrow unless we get a strong break above 2100 into the close.

Oh darn!

Tom

[Teddi Knight]

Since I have 6 open puts at 82.5 and 82, I decided to stay with the original theme and sell calls against my long ahead of the 3/11 dividend. Here is how it worked out. Long 300 shares at 83.00, STO 3 x Mar 20 83.5 calls at 0.55 with the stock at 82.75 this afternoon. Decent returns if called ahead of dividend, expires un-called or is called away at expiration.

[Teddi Knight]

Thanks for the reply.

I look forward to watching how you progress this trade.

Tom

[Teddi Knight]

Teddi, I think that you have a typo in the Intraday analysis. You said you were going to buy the $107 puts. I suspect you mean the $207 puts.

And I just entered the trade ($207 puts) along with you. Bought them at $1.36.

Will you hold these or trade them like Trading for Pennies?

Tom

[Teddi Knight]

Today I did the following trade in XOM:

BTO Mar 27th $79 puts
STO Mar 13th $85 puts

Net credit = $0.30

5% return on capital at risk for 9 days. I bought the long put 2 weeks after the short put expiration so I have some flexibility in case I need to roll or to possibly pick up some extra income if a roll is not needed.

Tom

[Teddi Knight]

I’m holding 3 x 3/6 82.50 puts, 3 x 3/20 82 puts and went long 300 shares at 83 this am. Obviously, I missed the strength of the sell off and am in early.
Appreciate the heads up on the BB strategy trade. May just sit on my 300 long position for the div and wait for a rally back to the middle BB around 85

I am reminded that “indecision is the key to flexibility”.

And if you like offsetting cliche’s, “almost any plan executed today is better than a perfect plan executed tomorrow” (attributed to Gen G S Patton).

[Teddi Knight]

Hopefully support is at $82. If so, it’s got good premiums now:)

Amy

[Teddi Knight]

Ex div is 3/11. I was thinking of going long at yesterday’s close more or less 83.37, and selling a Mar 20 83.5 call at 0.89. I would expect to get exercised for the dividend on or before Mar 10. Return could be around 1.07 for the 6 days.
If not, then I collect the div, keep the premium and roll or close the call.

We’ll see if this set up or something similar works in a few minutes!

[Teddi Knight]

what I was looking for was this:
“I earned .76 cents.” I just sort of wanted a range of price I should expect to get to make the trade worthwhile.
Got it in the trade alert. Thanks, Amy

[Teddi Knight]

The NASDAQ has finally printed a monthly close above the key 4,800 level.

It is my thesis that this February monthly close above 4,800 will trigger a bullish ascending triangle breakout similar to those already seen on the S&P500 and DJIA. This bullish close may now also enable numerous trading opportunities on a range of NASDAQ stocks.

The S&P500 and DJIA have already made bullish ascending triangle breakouts but both indices also tested their key breakout levels before continuation.

Thus, I will be expecting the 4,800 level to be tested on the NASDAQ before possible continuation here and, as a consequence of this, pullbacks may also be seen on NASDAQ stocks.

I have posted charts below to illustrate this view.

NB: click on the charts to enlarge the view…you will then be able to see the candles testing the broken the trend lines on the S&P500 and DJIA.

Attachments:

You must be logged in to view attached files.

[Teddi Knight]

Hi Mary
Try the attachment button you can see bottom left. That should upload your images.

[Teddi Knight]

Thanks Mary. Yes the put strike being sold was in the article. It was the $118 and the long side bought was $110. Trade was completed today. I posted the trade and listed it in the forum.

[Teddi Knight]

Hi Teddi,

I have been monitoring the NASDAQ closely and ….IMHO….I think it will pullback to test 4,800 before any bullish continuation.

The DJIA and S&P500 both pulled back to test their breakout levels before continuation from their ascending triangle breakouts.

There is no function to post my charts here on this reply but I can explain my thinking with added charts if you don’t mind me including a link?

Please let me know if it’s ok to add the link and I will happily provide.

Mary

[Teddi Knight]

Thanks again for the heads up. I STO the 47.5 March 20’s.
Amy

[Teddi Knight]

Alibaba shares are at an all-time low — and people are asking questions about fake customers.

This is why I personally stay away from Chinese business. Enough fraud here in the US.
https://finance.yahoo.com/news/alibaba-shares-time-low-people-155123985.html

[Teddi Knight]

haha, I did NOT generate that email; I am happy to discuss anything that doesn’t relate to politics, religion, or anything controversial. Yes, the message board should primarily focus on stocks, but to eliminate any fun banter seems silly.

[Teddi Knight]

yep, that’s what this forum is for:)

[Teddi Knight]

YUM got a downgrade with a price target of $80 today, so those $82 calls might be ok if sold by anyone.

[Teddi Knight]

Sorry I am late with the next post. I was finishing an article on Lumber Liquidators Stock. After being stopped out at 1:11 I pick up another 500 shares of TQQQ at 1:20 for $111.60

[Teddi Knight]

My position was stopped out around 1:11. I will be buying back in on dips.

[Teddi Knight]

Using a tight stop starting at 1:01 of 25 cents. If I am stopped out which I expect to be, then I will be buying the TQQQ again.

[Author]

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