Market Summary
The data source that we use to download option quotes inadvertently transcribed the June regular expiration option prices in place of the June Quarterly option quotes. We published yesterday's Couch Potato prior to catching the error. And of course in attempting to execute yesterday's published trades at today's opening prices there was a significant price difference. We apologize for the oversight, but no harm no foul as the market continued to pull back and we were (are) able get close to the prices that we want.

SPY Position Update
See the June 5th Couch Potato for the analysis

SPY Bear Call Spread
Today we closed out the $115 strike short call for an approx. $1,250 profit (see tables below) - PLEASE NOTE as mentioned yesterday we will maintain the $120 long call. The ideal scenario is for stocks to bounce off support to recent high allowing us to sell another June Quarterly strike call; plus after the June Quarterly options expire we hope to sell July calls against these same long calls that we have in play. At the very least we have very little to lose and a nice potential gain if this play works out. The 200-day SMA appears to be the demarcation point and if prices approach this level we will evaluate selling calls again.

SPY Bull Put Spread(s)
See the June 5th Couch Potato

SPY Risk Analysis
The June 5th Couch Potato mentioned "...We expect to close out our short call; therefore the only risk is prices decisively breaking below the 50-week SMA which has been the recent support level. A drop below support would threaten our short put(s) and force us to consider adjusting one or both put spreads..."

DIA Position Update
See the June 5th Couch Potato for the analysis

DIA Bear Call Spread
Today we closed out the $107 strike short call for an approx. $990 profit (see tables below) - PLEASE NOTE as mentioned yesterday we will maintain the $112 long call. The ideal scenario is for stocks to bounce off support to recent high allowing us to sell another June Quarterly strike call; plus after the June Quarterly options expire we hope to sell July calls against these same long calls that we have in play. At the very least we have very little to lose and a nice potential gain if this play works out. The 200-day SMA appears to be the demarcation point and if prices approach this level we will evaluate selling calls again.

DIA Bull Put Spread
See the June 5th Couch Potato

DIA Risk Analysis
The June 5th Couch Potato mentioned "...Similar to the SPY risk analysis above, we will be closing out our short call; therefore the only risk is prices decisively breaking below the 50-week SMA which has been the recent support level. A drop below support would threaten our short put(s) and force us to consider adjusting one or both put spreads..."

Final Comment
The June 5th Couch Potato Final Comment stated "... Also, the market gave us a gift as we initiated the call spread(s) on Thursday and Friday's carnage should allow us to close out the short calls at our target profit after only one day..."Fortunately, the error with publishing the wrong short call quotes did not compromise the opportunity to profit from this trade.

Gregory Clay

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.