Yesterday's Couch Potato mentioned "...the difficulty with the SPY ETF getting past the $111 level and strong technical resistance at the $112 Fibonacci 50% retracement level. At the very least the SPY is continuing to trade within upper and lower bull channel trend lines." There has not been much of a change in the market's momentum and yesterdays comment is still valid.
Listed below is the status of our SPY Iron Condor trade as of Wednesday, December 9th. This position has been open for 28 days
The entire position is $2,090 in the black
SPY closed at $110.02
Both 30-day historical volatility and implied volatility numbers are still stable - both volatility numbers are near 52 week lows, which is considered bullish
SPY is priced at its 14-day EMA (see SPY chart down below)
SPY is trading ABOVE its 20-day Bollinger Band SMA, and 50-day simple moving average (see SPY chart)
SPY is well ABOVE its 200-day simple moving average (see SPY chart)
Relative Strength Indicator (RSI) is neutral (See Spy chart)
Moving Average Convergence/Divergence (MACD) is giving a bearish signal (See Spy chart)
Bear Call Spread
Yesterday's Couch Potato recommended closing out this entire call spread for an approx. $1,200 profit (see tables below)
Bull Put Spread
We are immediately closing out the entire put spread for an approx. $890 profit (see tables below)
As mentioned above we are closing out all of the remaining Bull Put spread option contracts. After the closing trade, we will have taken our money off the table and the December Iron Condor is no longer at risk.
We have already closed out the Bear Call spread. At this point it is not worth the risk to maintain the Bull Put spread and as mentioned above we are now exiting this position.
Yesterday's Couch Potato "Final Comment" section stated"... The recent market pullback allowed us to close our call spread. Now we need to stocks to rise a bit so that we can exit our Bull Put spread." The stock market cooperated and we earned our premium for December, now we can plan on setting up our January trades.
Couch Potato Trader Disclaimer
All results reported in this section are hypothetical. While the numbers represented here may have been achieved or beaten by our readers, we make no representation that any individual investor achieved these exact results. The tracking for the plays listed in this section uses closing prices for the day the newsletter is published and it is not meant to imply that any reader actually received those prices (though many often do) or participated in these recommendations (even though many do). The portfolio represented here is hypothetical and for investment education purposes only. It is only an illustration of what type of gains a knowledgeable trader might receive utilizing these strategies. If you don't get close to these results, guess what. It isn't the fault of the strategies.
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