Market Summary
The February 14th Couch Potato Final Comment section stated "... At this point, the best-case scenario for us is a market advance or at the very least we need stocks to stay above current support levels..." After the long three-day weekend the market granted our wish and we are now cashing out of February with a nice gain!

SPY Position Update
Listed below is the status of our SPY Iron Condor trade as of Tuesday February 16th. This position has been open for 20 days:
The entire position is approx. $1,810 in the black
SPY closed at $109.74
Implied volatility has pulled back from the accelerated pace of a week ago
SPY surged back ABOVE its current 14-day EMA (see SPY chart down below)
SPY is still trading BELOW 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 turning from bearish to neutral (See SPY chart)
Moving Average Convergence/Divergence (MACD) is bearish but starting to turn up (See SPY chart)

SPY Bear Call Spread
The February 4th Couch Potato recommended closing out the entire call spread for an approx. $810 profit (see tables below)

SPY Bull Put Spread
We are immediately closing out the entire put spread for an approx. $1,000 profit (see tables below)

SPY Risk Analysis
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 February SPY Iron Condor is no longer at risk.

DIA Position Update
Listed below is the status of our DIA Iron Condor trade as of Tuesday February 16th. This position has been open for 30 days:
The entire position is approx. $1,380 in the black
DIA closed at $102.81
The 30-day historical volatility and implied volatility number have stabilized after accelerating the past few weeks
DIA has risen ABOVE its current 14-day EMA (see DIA chart down below)
DIA is trading BELOW its 20-day Bollinger Band SMA, and 50-day simple moving average (see DIA chart)
DIA is still well ABOVE its 200-day simple moving average (see DIA chart)
Relative Strength Indicator (RSI) has turned from bearish to neutral (See DIA chart)
Moving Average Convergence/Divergence (MACD) is turning from bearish to bullish (See DIA chart)

DIA Bear Call Spread
The January 24th Couch Potato recommended closing out the initial call spread for an approx. $810 profit and following up with a TRADE ADJUSTMENT to roll the call spread to lower strike prices (see tables below)

The February 4th Couch Potato recommended closing out the adjusted call spread for an approx. $860 profit (see tables below)

DIA Bull Put Spread
The January 24th Couch Potato recommended closing out the initial put spread for an approx. $1,740 loss and following up with a TRADE ADJUSTMENT to roll the put spread to lower strike prices (see tables below)

We are immediately closing out the entire put spread adjustment for an approx. $1,450 profit (see tables below)

DIA Risk Analysis
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 February DIA Iron Condor is no longer at risk.

Exit Plan
We have already closed out both the SPY and DIA Bear Call spreads. At this point it is not worth the risk to maintain the SPY and DIA Bull Put spreads and as mentioned above we are exiting these positions.

Final Comment
The February 14th Couch Potato Final Comment mentioned "If the market is kind to us and we get a repeat of last week, then we will have converted a potentially disastrous month into decent gains... Considering the negative sentiment that is already permeating the market we will not hesitate to leave money on the table to lock in gains if it appears the risk is not worth it. Our focus is to generate cash from managing risk, not betting on market direction." Stocks cooperated and we are locking-in our February profit – without having to leave much on the table!

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.