The last week of July was a somber one. Stocks were retreating lower the entire week thanks to headline after headline regarding the debt ceiling extension and lack of progress in Washington. Concerns over a credit downgrade for the U.S. remain a very dark cloud although many analysts believe it's already been priced into the market. The stock market's big plunge on Wednesday, July 27th knocked out some of our trades. By Friday's closing bell it was one of the worst weeks this year.
We had plans to take profits in the SWN trade on July 28th at the closing bell. Thank goodness we did. The stock sank following its earnings report. A couple of our candidates, EXXI and KALU, are having trouble with their option spreads. At least that's the nice way of saying it. The spreads are so wide we can't trade them. You have to wonder what the market makers in these options are doing!
If we do not see a debt ceiling deal that actually has a chance of passing by Monday morning then stocks are likely to sell-off again and we'll see more stops get hit.
There are no new stop losses.
Disclaimer: At any given time the author may have positions in any or all of any companies mentioned in the Leaps Newsletter.
--Position Summary Table--
Table lists Directional CALL or PUT/LEAPS only.
Insurance puts, if applicable, are not shown.
Red symbol/name represents a play or option position exited or closed this week.