A Stifel Nicolaus downgrade on Concho caused a $5 intraday drop on Concho Resources and stopped us out of our short put position.

Fortunately Concho had rallied about $6 on Monday and option volatility has plummeted this week so we were able to exit without a loss. (1.00)

That leaves CAT and FLS as active positions and both were out of danger at today's close but that can change at any time.

The S&P failed at exactly 1300 today. (1300.51 to be exact) This is decent resistance between 1300-1303 and the failure here was not unexpected. This is going to be the line in the sand that either produces another dip or signals a new rally has begun if that level is broken to the upside.

We have the same problem with Nasdaq 2700 and NDX 2270. I do believe the market action today was bullish in shaking off the Bank of America dividend denial and the lowest new home sales in decades BUT until we move over those levels I don't want to add any new positions.

Jim Brown

Current Portfolio

Current positions

Current Position Changes


New Recommendations


New Long Term Recommendations

None - Still too much volatility

New Aggressive Recommendations

None - Still too much volatility

Prices Quoted in Newsletter

At Option Investor we have a long-standing policy prohibiting the editors and staff from actually trading the individual recommendations in order to conform to SEC rules concerning trades.

The prices quoted in the newsletter are the end of day prices in most cases.

When discussing fills or stops the prices quoted are the bid/ask at the time the entry trigger or exit stop is hit. This is NOT a price that someone on staff actually got using a live order.

For entry/exit points at the market open the prices quoted will be the opening print. The majority of the time the readers are able to get a better fill than the opening print because of market maker bias at the open.

For trades with an opening qualification the prices quoted will be the bid/ask at the time the qualification was met.

All of these rules normally produce worse prices than an active trader would normally get. Because they are standardized there may be some cases where a price quoted was better than an actual fill. If you received a price that was dramatically different than what was quoted please let us know.