Market Overview

Slow Motion Friday


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Although markets will be open today (Friday 11/23), trading will be extremely slow. Don't be surprised to see not see much today. This morning it looks like the bulls will keep their upside bias of the last few days. Trading in either direction should be muted.

The Weekly Trading Service has 2 SPX bull put spreads expiring today. This morning, both spreads are >65 S&P points OTM so we obviously expect a successful expiration providing full profits. That would be +10.5% and +6.2% gains, respectively.

These gains will build on the recent string of profits (+6.38%, +8.70%, +11.56%, +4.17%, +4.71%, +9.29%) attributed to enhancing the strategy in response to a less than stellar 2012 compared to previous years.

Wednesday's unfilled Monthly Trading Service spread adjustments (QQQ and RUT) will be re-released today as GTC orders (they were Day Orders previously). Due to a shortened trading day and ultra thin volume, it may take into next week to fill these orders; that is why we are re-releasing them as GTC orders so they don't have to be re-released again. Don't be in a rush to execute these adjustments. If it takes into next week to fill these trades at the recommended prices, that is more than fine.

These adjustment trades for the Monthly Trading Service keep with the strategy enhancement of moving to back month options strikes. This strategy adaptation has already proven its value during the recent market selloff as out spreads remained nice and safe and our premium values never got blown out. October & November produced +12.7% and +5.90% portfolio gains, respectively, as the Service recovers from a less than desirable 2012.

We hope everyone had a great Thanksgiving. Enjoy the weekend and prepare for the upcoming week. Thanks everybody and have a great weekend!

The preceding article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.

Posted-In: Markets Trading Ideas


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