Editors Note:

The Dow fell -180 points at the open but recovered to post a decent gain. The futures were negative all night and the Dow gapped lower at the open. After trading sideways until 1:PM the index bounced to 24,674 then traded sideways the rest of the day. There were plenty of opportunities for a decline but it never happened.

Even though most of our positions we added on the Tuesday dip last week have rebounded, the options are still slightly negative. This is because the inflated premiums from the high volatility, are shrinking as the volatility fades. As the stocks move higher the premiums will eventually turn positive. This is the problem with buying in high volatility events.

I am not putting any stop losses on our positions. With volatility still high and triple digit intraday moves that is just an opportunity to be stopped at the lows for the day. These are April positions or longer and the volatility should not last more than 2-3 more weeks. When a final rebound appears it could be very strong.



Current Portfolio


Stop Loss Updates

Check the graphic below for any new stop losses in bright yellow. We need to always be prepared for an unexpected decline.


Profit Targets

Check the graphic below for any profit stops in green. We need to always be prepared for a profit exit at resistance.





Current Position Changes


No Changes



If you are looking for a different type of option strategy, try these newsletters:

Credit spreads and naked puts = OptionWriter

Long term option investments = LEAPS Investor

3-6 month Option Trades = Ultimate Investor

Iron Condors = Couch Potato Trader

Long and short equity trades = Premier Investor


Full updates on all plays on Wednesday and Saturday. Only closed plays are updated on other days.


BULLISH Play Updates

No Updates to Current Positions



BEARISH Play Updates (Alpha by Symbol)

No Current Puts