Alerts: CEDC and ILMN Stopped out today.
Unfortunately, eventhough indices traded in a narrow range today, it looked
like stocks were being rotated. The stocks that were up yesterday were down today and the stocks that were down today were no only up, but up multiple dollars.
We were stopped out in two (2) issues today CEDC Jan 30 at $1.90 Debit and we closed the Jan 35 out for a $0.10 credit for a NET DEBIT of $1.80.
The ILMN January 30 was also stopped out at $2.00 debit and we closed
the January 35 call for a credit of $0.20, creating a net debit of $1.80
It is unfortunate with the Indexes pushing against strong resistance ( e.g SPX 1139 )that we get whip sawed every other day with our positions.
We still have RIG to worry about as it is also in the money. If this one should get stopped out, we will look to roll this one out to the February cycle and see if we can minimize the loss on this spread.
We should be looking to roll to the FEB 95/100 spread.
We won't recoup all, but IF we get the pullback we cut the losses significantly.
We still need RIG to close under 95 next month. That might be a challenge ,so if we get stopped out we need to first examine the situation and where we are in the larger scheme in relationship to the overall market and than determine if we should roll out the RIG position or just take the los and go forward
EFT credit spreads will be added this weekend.
The monthly cash machine will begin adding some ETF credit spreads for this month starting this weekend.
We will suggest several as SUPPLEMENTAL PLAYS, initially; so they will not be followed in a separate portfolio just yet, however we should be staring with them in a separate portfolio with March recommendations. In March we will follow them as we currently do our normal MCM positions, but they will be in a portfolio strictly for ETF's/Holders, etc. So in March we will be offering two (2) portfolios and supplemental lists. This way you will have your choice to mix and match from each or just use some or all of the other. It also gives you more play choices if you do not like some of the recommendations we suggest. So this weekend, we will be offering a SUPPLEMENTAL ETF play list for February, getting you ready for the EFT portfolio starting with March recommendations.
February Watch list alert: CHA goes on watch list with close above $43 at $44.03.