Trade Update – Let’s pick up some premium when the unemployment number is released this Friday

bradrr — Thu, 07 Jan 2010 00:50:31 +0000

Question: What if the unemployment number this Friday really disappoints and the markets tanks? Any chance we could still grab some additional premium on the bottom with the 50 day SMA right at 600? Maybe a 600/590…..right now it only has a .20 natural spread. But a decent pullback on Friday would add some $to it.

Response: Absolutely. I think we should pick up some premium within 2 hours from when the unemployment numbers are released this Friday. If the market rallies, let’s open some bear call spreads, and if the market sells off, let’s open some bull put spreads. Once the market moves, it’s my guess that the market will stabilize rather quickly as investors/traders/money mangers await Q4 earnings that start to come out next week. I’ll send out an advisory tomorrow, Thursday, with my thoughts on strike price placement.

Trade and Market Update

bradrr — Fri, 27 Nov 2009 17:01:34 +0000

The market is DOWN today, but let’s continue to be patient on our bottom, December, bull put spreads. Unemployment numbers are coming out next Friday, Dec 4th, and implied volatility (VIX) will most likely increase in anticipation of this major economic release probably giving us better strike prices and higher premiums. The DOW and S&P 500 indexes are still in the top range of their respective upward sloping channels, so there is a good chance that these indexes will pull back farther, giving us better, and safer, December strike prices.

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Trade Update – Let’s pick up some premium when the unemployment number is released this Friday

Trade and Market Update