Market Summary
The December 30th Couch Potato Market Summary stated "...December quarterly options expire at the end of the trading day tomorrow. The major indexes have done a slow crawl all week. The last trading day of the year will probably be another low volume day with prices remaining range-bound. If tomorrow is more of the same we will end the year on a high note with gains for the month...". Option expiration day went our way and we ended the year with another monthly gain.

SPY Position Update
SPY closed $125.75 on Friday – the December position gained approx. $1,000
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 ABOVE its 50-day simple moving average (see SPY chart)
SPY is also 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 turning bearish (See SPY chart)

The December 5th Couch Potato published a December Quarterly expiration month call spread
On December 30th the Couch Potato suggested closing out the entire SPY call spread for an approx. $500 profit (see tables below)

SPY Bull Put Spread
The November 28th Couch Potato published a December expiration month put spread
On December 5th the Couch Potato suggested closing out the entire SPY put spread for an approx. $500 profit (see tables below)

SPY Risk Analysis
Quarterly options expired this past Friday – we suggested a closing trade, plus all of the strikes expired out of the money.

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IWM Position Update
IWM closed at $78.24 on Friday – the December position basically broke even
IWM is priced ABOVE its current 14-day EMA (see IWM chart down below)
IWM is trading ABOVE its 20-day Bollinger Band SMA (see IWM chart)
IWM is ABOVE its 50-day simple moving average (see IWM chart)
IWM is also priced ABOVE its 200-day simple moving average (see IWM chart)
Relative Strength Indicator (RSI) is extremely bullish (See IWM chart)
Moving Average Convergence/Divergence (MACD) turned bearish (See IWM chart)

IWM Bear Call Spread
The November 28th Couch Potato published a December expiration month call spread
On December 14th the Couch Potato suggested closing out this spread to adjust to higher strike prices (see tables below)

The December 14th Couch Potato published the trade adjustment to roll the initial December call spread to the end of the month (December Quarterly). Also note the increase in the number of contracts
On December 30th the Couch Potato suggested closing out the entire IWM call spread for an approx. $950 profit (see tables below)

IWM Risk Analysis
Quarterly options expired this past Friday – we suggested a closing trade, plus all of the IWM strikes expired out of the money.

Exit Plan
The SPY and IWM call option contracts expired on Friday

Final Comment
The December 26th Couch Potato mentioned "... We appear to be going down to the wire with our trade adjustments as prices have inched upward to our short strikes... Obviously the best case scenario for us is for prices to stall while overbought conditions are absorbed..." We got the ideal scenario and we finished the with gains for the month.

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.