Market Summary
Stocks are pulling back a bit from recent highs and with April options expiring on Friday we are taking advantage of the opportunity to exit some short positions.

SPY Position Update
SPY closed at $32.46 on Monday - the overall March position is approx. $1,700 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 down below)
SPY is ABOVE its 50-day simple moving average (see SPY chart)
SPY is still ABOVE its 200-day simple moving average (see SPY chart)
Relative Strength Indicator (RSI) turned neutral (See SPY chart)
Moving Average Convergence/Divergence (MACD) is bullish (See SPY chart)

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 -.0371 (96% probability this position will be profitable)

Exit Plan
We should be able to close out the SPY put spread for a few cents tomorrow. Typically we wait until the market has been trading for around 45 minutes or so before issuing trade orders, but in this situation it probably doesn't make a difference as the spread is only worth pennies anyway.

IWM Position Update ---------------------------------------------------------------
IWM closed at $83.18 on Monday - the April position is approx. $800 in the black
IWM is priced close to 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) turned neutral (See IWM chart)
Moving Average Convergence/Divergence (MACD) is bullish but turning down (See IWM chart)

The March 28th Couch Potato published an April expiration month IWM bear call spread
This put spread is approx. $800 in the black (see tables below)
$84 strike price short call delta is -.3473 (65% probability this position will be profitable)

Exit Plan
The IWM immediately surged higher after opening this call spread and basically showed an unrealized loss up until today. April options expire on Friday and if the price turns back up there is little time to recover – even with the recent three day downturn we are still close to the $84 short strike. Winning traders oftentimes are happy with base hits, we can't always hit home runs and a base hit is certainly preferable to striking out. The risk is just not worth stretching this trade out hoping for more – greed is one of a traders worst enemies.

After the market opens tomorrow we will attempt to identify an intra-day support level and then issue an order to unwind the IWM call spread. Another strategy is to just exit the trade after the first hour of trading if the price is acceptable.

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.