Market Summary
The April 2nd Couch Potato Market Summary mentioned "... Technically and fundamentally, stocks are set up to continue higher as historically, April and May are considered two of the best months for stock performance. As we get deeper into earnings season and if companies report good results, this will drive the major indexes to new highs. And from a technical perspective, as indicated in the charts below, stocks are not near overbought levels. This suggests that there is plenty of room above before we can expect price resistance. We need to see if the current trend continues and prices move higher, or are we at a resistance level which would suggest range-bound trading..." Thus far, most of the major indexes have rejected attempts to break-through near-term resistance levels. Prices are at still near their 52-week highs, and usually require multiple attempts to penetrate firm resistance. The next few weeks might tell the story of what will be the price trend as more companies start reporting earnings, plus the forthcoming Federal Reserve Board meeting.

SPY Position Update
SPY closed $132.86 on Friday - the April position is approx. $1,200 in the black
SPY is priced close to 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 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)

The March 22nd Couch Potato published an April expiration month bear call spread
This call spread is approx. at break-even (see tables below)
$134 strike price short call delta is .3235 (67% probability this position will be profitable)

The March 21st Couch Potato published an April expiration month bull put spread
This put spread is approx. $1,200 in the black (see tables below)
$125 strike price short put delta is -.0514 (95% probability this position will be profitable)

SPY Risk Analysis
April options expire on Friday and we plan on exiting all the SPY contracts over the next few days. The put spread has already triggered our exit rule, plus we will be looking for a good exit point for the call spread as the SPY price has hovered near the $134 short call for over a week.

IWM Position Update ---------------------------------------------------------------
IWM closed at $83.98 on Friday - the April position is approx. at break-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 down below)
IWM is ABOVE its 50-day simple moving average (see IWM chart)
IWM is well ABOVE its 200-day simple moving average (see IWM chart)
Relative Strength Indicator (RSI) is bullish (See IWM chart)
Moving Average Convergence/Divergence (MACD) is bullish (See IWM chart)

The March 28th Couch Potato published an April expiration month IWM bear call spread
This put spread is approx. at break-even (see tables below)
$84 strike price short call delta is -.5022 (50% probability this position will be profitable)

IWM Risk Analysis
Similar to the SPY above, April options expire on Friday - we did not have the opportunity to do an IWM put spread and we will be looking for a good exit point for the call spread as the IWM price has hovered near the $84 short call for over a week.

Exit Plan
April options expire next Friday and over the next few days we will begin issuing orders to close out our short positions. As indicated in the SPY Bull Put table above this spread already triggered the ordering rule to exit the position. On Monday, if prices do not gap down in the initial hour of trading, we should be able to exit the SPY short put at the .05 exit price. If the market does not cooperate on Monday, we will follow this same strategy each subsequent day until the short put contracts are closed. And obviously we will monitor the SPY and IWM call contracts to look for the opportunity to exit those positions.

Final Comment
As mentioned above, the March options expire on Friday and we expect to exit the SPY and IWM short contracts over the next few days.

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.