Option Investor


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BIG DOWN OPENMorning Troops,

It looks like we're in for a big spike down this morning. Will it last? Who knows?

Yesterday, I had a tough day getting the option symbols right. Many traders figured it out, but I managed to confuse some others. It was my intention to put on the 800/790 MID April bull put spread. We got filled at $.55.

That being said, many CPTI subscribers did not enter the position. Well, based on the lower open, things have changed a bit. If I were to put on a position now, I'd lean toward the 790/780 bull put spread -- if the premium becomes available. That extra ten points of cushion might come in handy if there's a serious correction.

A big down spike this morning may bring with it a spike in the VIX. That should translate into additional premium becoming available. More premium means more opportunity. Don't wait for me. Seminar grads, and some other CPTI students, know how to find their own trades.

You know the indexes we use. You know how to negotiate premium -- at least you should by now. You know how to place the trades. If you don't, you should re-read the old postings or come to one of my seminars.

Again, sorry for yesterday's confusion. Even I screw up occasionally. But, that's why I always emphasize that you double check the option symbols and use some common sense in evaluating trades -- even the ones I suggest. Just because I'm suggesting a trade does not mean it's right for everyone.

Good luck this morning. Should be interesting. Trade smart!!


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