SPY Position Update
Listed below is the status of our SPY Iron Condor trade as of Wednesday January 13th. This position has been open for 35 days:
The entire position is $1,670 in the black
SPY closed at $114.62
Both 30-day historical volatility and implied volatility numbers are low - both volatility numbers are still near 52 week lows, which is bullish
SPY is priced ABOVE its current 14-day EMA (see SPY chart down below)
SPY is trading ABOVE its 20-day Bollinger Band SMA (see SPY chart)
SPY is trading ABOVE its 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 bullish (See Spy chart)
Moving Average Convergence/Divergence (MACD) is bullish (See Spy chart)

SPY Bear Call Spread
We are doing a trade adjustment to modify the risk profile for this spread (see tables below)
After rolling the $115 short call to $116 the delta improves to .1639 (84% probability this position will be profitable) and the spread will be approx. $690 in the black

SPY Bull Put Spread
The January 4th Couch Potato recommended closing out the entire put spread for an approx. $980 profit (see tables below)

SPY Risk Analysis
Since we closed out the short $104 strike put and bought back the $115 short call, the risk we have to manage is the $116 strike price sold call (replaced the $115 call). The risk associated with the sold call will be evaluated and resolved based on the Exit Plan.

DIA Position Update
Listed below is the status of our DIA Iron Condor trade as of Wednesday January 13th. This position has been open for 35 days:
The entire position is $1,455 in the black
DIA closed at $106.75
Both 30-day historical volatility and implied volatility numbers are low - both volatility numbers are still near 52 week lows, which is bullish
DIA is priced ABOVE its 14-day EMA (see DIA chart down below)
DIA is trading ABOVE its 20-day Bollinger Band SMA (see DIA chart)
DIA is trading ABOVE its 50-day simple moving average (see DIA chart)
DIA is well ABOVE its 200-day simple moving average (see DIA chart)
Relative Strength Indicator (RSI) is bullish (See DIA chart)
Moving Average Convergence/Divergence (MACD) is neutral (See DIA chart)

DIA Bear Call Spread
We are closing out the entire call spread for an approx. $780 profit (see tables below)

DIA Bull Put Spread
The January 4th Couch Potato recommended closing out the entire put spread for an approx. $675 profit (see tables below)

DIA Risk Analysis
As mentioned above we are closing out all the Bear Call spread contracts. After the closing trade, we will have taken our money off the table and the January DIA Iron Condor is no longer at risk.

Exit Plan
We have already closed out the DIA Iron Condor position. The rules for exiting the SPY Bear Call spread are:

If the delta associated with the short call rises to .50 we will look to close out this spread (buy the short contracts, sell the long). Otherwise, on option expiration day, let the Bear Call spread expire worthless and we keep the entire sold premium for any open contracts where the short strikes are not threatened

Final comment
As of today stocks have not pulled back as much as we would like, but we are showing reasonable profits. It is risky to attempt to extract further gains; if the market surges prior to expiration we could very easily forfeit what we have already earned. While we have some control it is best that we take most of our money off the table and start planning the next trades.

Gregory Clay

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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.