Interesting that the current option bias is heavily favoring a drop in share price short term.
The ask premium on the Feb 70 calls is $0.60 whereas the ask premium on the Feb 70 puts is $1.40 (there is seldom this large a spread). So, the betting is that the share price will be below 70 come Feb. 15. That well may be the case however, I am betting the opposite with a shorter (than 2/15) horizon. I sold the puts and my time frame is sometime before the x-date (one does not want to be short puts or long calls on the x-date).
I will sell as of today..Nice profit. Will be 100% in cash. I believe the market has come to far to fast. I will wait for a drop...possibly to 67-68 for re-entry. don't want to hold thru Feb and March...GL!
Moving Health Care Fund into cash today. Energy Services will be sold next week. Holding on to the three bond funds. Too much talk of record market highs and possible short term correction on CNBC. GLTA.
This morning I bought back (closed the trade) the Feb. 70 puts that I sold a week ago. Sold originally for equivalent of 1.30/share and bought back for 0.60/share for a net profit of $0.70/share equivalent.
All in cash now in trading account but think there may be one or two more trades prior to x-date.
Does anyone know what TOCOM crude oil is that comes up on daily energy prices? The June contract for crude and kerosene is an exorbent amout. I rarely look daily but never noticed until recently. Thanks if you know.
I just don't know when the SPX will reach resistance AT 1512 TO 1525. Think this is the area of a pullback. It could coincide with the ex. dividend date. with the put change in direction. Just my opinion.