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.

Trade Management:

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

Tuesday

8:30 am Empire State Manufacturing Survey

Wednesday

9:15 am Industrial Production

10:00 am Housing Market Index

2:00 pm Beige Book

Thursday

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

Friday

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,

Dot Hazlin