Another Friday, another record. Investors are happy as earnings season begins.
The broad market ended the second week of 2018 on an upbeat note; all the major indices posted record gains.
The benchmark index SPX closed +18.68 points at 2786.24, a gain of .67%. Friday's close represented a gain for the week of 1.6%.
SPX 6 month chart
VIX 6 month chart
The VIX closed yesterday unchanged up just slightly from the previous day, +.28 points at .33%.
Below is the open position status:
RUT Put Credit Spread for March 16:
This position was opened on Tuesday, January 9; details below:
SOLD RUT March 16 1470 Put, 10.10 credit.
BOUGHT RUT March 16 1440 Put, 7.30 debit.
Order was filled as a "Vertical" for $2.80 net credit (all four legs).
Margin/Risk is calculated by the width of the wings ($3,000), less credit received.
Margin/Risk for this week's trade: $2,720.
Target Gain: 5% of margin
Max Loss: 7% of margin
Below is the risk graph of this week's position as of the close Friday:
RUT March 16 Put Credit Spread:
RUT closed Friday at 1591.97, +5.18 points or .33%. The position is currently +$97, so doing well with the continuing rally.
Below is the RUT chart showing the short strike:
RUT 6 month chart
Next week's economic news is summarized below:
Monday, January 15
Markets closed; US Martin Luther King Holiday
8:30 am Empire State Manufacturing Survey
9:15 am Industrial Production
10:00 am Housing Market Index
2:00 pm Beige Book
8:30 am Housing Starts
8:30 am Jobless Claims
8:30 am Philadelphia Fed Business Outlook Survey
11:00 am EIA Petroleum Status Report
10:00 am Consumer Sentiment
Next week is the planned entry for the February RUT Iron Butterfly. Tuesday will be 31 days to expiration, so we will look at setups and enter by mid-week depending on market conditions and available credit. .
For those unfamiliar with the strategies we trade, the trade management guidelines for all the Couch Potato Trader plays can be found here:
Link to Articles
Trade updates will be posted as appropriate.
As always, stay keen on your risk management and trade carefully,