We started strong and got stronger yet right up until we ran into resistance around the 2165-2170 area I mentioned in the Weekly Strategies yesterday. I would have liked to see the market just a little bit higher before taking a position in the SPY puts but just didn’t think we’d get there. It’s a very short-term play with not a lot of money involved, and it wasn’t exactly what I’d call a weak day, but with the Oil racing ahead and the Gold showing some strength along with the UD$, I took a shot. Again, not a weak day, with NYSE internals 2.5:1 positive stocks and volume but we start earnings tomorrow (as well as Yom Kippur) and I would not be surprised by a low volume downdraft.
In any event, we don’t have much at risk in the trade and I intend to be on top of it without giving it much room to go bad. During the day the puts did move from $ .45 up to just over $ .60. I was hoping for a close of up under $70 on the Dow and lower end of the range on the SPY instead of midrange on both, but tomorrow is another day…CAM
Phone: (702) 650-3000
Fax: (702) 697-8944