SPY Position Update
SPY closed $117.33 on Thursday - the April position is approx. $4,700 in the red
SPY is priced BELOW at its current 14-day EMA (see SPY chart down below)
SPY is trading BELOW its 20-day Bollinger Band SMA (see SPY chart)
SPY is just BELOW its 50-day simple moving average (see SPY chart)
SPY is BELOW its 200-day simple moving average (see SPY chart)
Relative Strength Indicator (RSI) is extremely oversold (See SPY chart)
Moving Average Convergence/Divergence (MACD) is extremely oversold (See SPY chart)

The July 5th Couch Potato published an August expiration month bear call spread
On August 1st the Couch Potato suggested closing out the short calls for an approx. $1,300 gain (see tables below)

We are opening another August expiration SPY call spread at lower strike prices (see tables below)

The July 5th Couch Potato published an August expiration month bull put spread
We plan on closing out the this position and rolling down to lower strike prices (see tables below)

If it appears that the $112 support level will hold tomorrow the plan is to roll down the SPY put spread to lower strike prices (see tables below)

DIA Position Update ---------------------------------------------------------------
DIA closed at $114.25 on Thursday - the April position is approx. $2,200 in the red
DIA is priced BELOW its current 14-day EMA (see DIA chart down below)
DIA is trading BELOW its 20-day Bollinger Band SMA (see DIA chart down below)
DIA is BELOW its 50-day simple moving average (see DIA chart)
DIA is BELOW its 200-day simple moving average (see DIA chart)
Relative Strength Indicator (RSI) is extremely oversold (See DIA chart)
Moving Average Convergence/Divergence (MACD) is extremely bearish (See DIA chart)

The July 12th Couch Potato published an August expiration month DIA bear call spread
On August 2nd the Couch Potato suggested closing out the entire call spread for an approx. $1,700 gain (see tables below)

We will attempt to open another DIA call spread for the August expiration at lower strike prices (see tables below)

The July 27th Couch Potato published an August expiration month DIA bull put spread
We plan on closing out this position and rolling down to lower strike prices (see tables below)

If it appears that the $106 support level will hold tomorrow the plan is to roll down the DIA put spread to lower strike prices (see tables below)

Final Comment
Implied Volatility has exploded during the stock price carnage of the past few weeks, especially this past week with daily triple digit moves. If stock prices do another triple digit gain tomorrow, we still plan on closing out the current SPY and DIA bull put spreads, but the 'trade adjustments' will probably be higher strikes compared to what is published. Ideally, we should be selling puts with published Delta's similar to what is in the tables above (with the same spread between the short and long strikes). Also, in the event of a price surge, the SPY and DIA bear call spreads will be at higher strike prices based on Delta's similar to the tables the above. However if support fails and prices fall, we will need to hold off on doing any trades until the dust settles.

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.