SPY Position Update
SPY closed $117.46 on Thursday
SPY is 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 ABOVE its 50-day simple moving average (see SPY chart)
SPY is priced ABOVE its 200-day simple moving average (see SPY chart)
Relative Strength Indicator (RSI) is extremely bullish (See SPY chart)
Moving Average Convergence/Divergence (MACD) is bullish (See SPY chart)

SPY Bear Call Spread
The October 10th Couch Potato recommended a trade adjustment to buy back our $115 short calls and sell twice the amount of October expiration $118 call contracts
$118 strike price short call delta is .3561 (64% probability it will expire out of the money tomorrow) (see tables below)
We plan on closing out all the short contracts tomorrow. If the SPY dips tomorrow and does not touch the $118 strike price we should be able to hold off until early afternoon to wait for the option price to drop further
BUT, if the SPY surges any time tomorrow and the price hits the $118 short call we need cut our losses and exit the position
We DO NOT plan on keeping the $118 short call at market close – even if the SPY closes below the price of our short call aftermarket activity can drive the price higher and we could possibly get assigned over the weekend

DIA Position Update
DIA closed at $111.07 on Thursday –
DIA is ABOVE its current 14-day EMA (see DIA chart down below)
DIA is trading ABOVE its 20-day Bollinger Band SMA (see DIA chart)
DIA is ABOVE its 50-day simple moving average (see DIA chart)
DIA is priced ABOVE its 200-day simple moving average (see DIA chart)
Relative Strength Indicator (RSI) is extremely bullish (See DIA chart)
Moving Average Convergence/Divergence (MACD) is bullish (See DIA chart)

DIA Bear Call Spread
The October 10th Couch Potato recommended a trade adjustment to buy back our $108 DIA short calls and sell twice the amount of October expiration $111 call contracts
$111 strike price short call delta is .5291 (48% probability it will expire out of the money tomorrow) (see tables below)
We plan on closing out all the short contracts tomorrow. If the DIA dips tomorrow and remains below the $111 strike price we should be able to hold off until early afternoon to wait for the option price to drop
BUT, if the DIA surges any time tomorrow or stays above our $111 short call we need to exit the position
We DO NOT plan on keeping the $111 short call at market close – even if the DIA closes below the price of our short call aftermarket activity can drive the price higher and we could possibly get assigned over the weekend

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.