Markets have gone parabolic lately and nothing seems to slow them down. The interesting thing today was that AAPL, and Tech as a whole, continued their vertical ascent but the rest of the market continued waffling in a tight range. This indicates either the rally is coming to and end and will digest it's recent gains before moving higher, or that it is mustering up the next explosive move higher. Maybe another 112 S&P handles by next Tuesday? At this point nothing would surprise me.....
If resolution is to the upside, then S&P 1360-1370 will be the next resistance point. S&P 1362-1365 is a major resistance area going back many years so that should slow things down. If the market rolls over to the downside, the first stop should be 1320, the location of the 20 Day Moving Average.
In the Weekly Service I attempted a Bear Call Credit Spread today on SPX with options expiring Friday (tomorrow) but got no fills; even after I reduced the price from the original entry. It was a long shot to fill anyway but I did not want to move the strikes down to execute the trade as Uncle Ben is speaking tomorrow and lowering the strikes would have skewed the risk profile too much for comfort.
For the Weekly & Monthly Service I have a couple roll adjustments that I will administer between now and next Friday's OpEx. I am in no rush as the adjustments are not fluctuating so if between now and then the "ban on declines" is lifted then all the better. If not, and things contiune higher, no worries and I will simply roll them out before OpEx.
For a little more insight into the open trades and forthcoming adjustments:
The Delta's on the Bear Debit Put Spreads in the Monthly & Weekly Trading Services favor holding the trades open for now as opposed to adjusting them to March yet. The Feb Delta's are larger than March (as they should be this close to OpEx) and will therefore provide more participation for the positions on any pulback (again, if "they" lift the "ban on declines"). The prospective adjustment positions are maintaining their integrity so there is nothing but upside potential for the current positions by holding until closer to Feb Opex before adjusting; especially considering the market cicumstances. This one of the advantages of using ITM Put Debit Spreads in rising markets.
The Monthly Trading Service Bear Call Credit Spread adjustment trade values are not fluctuating so holding open is not costing me any adjustment premium to do so. The positon will definitely have to be adjusted to March strikes (unless a metor hits) but that is the beauty of these strategies, they can be roll adjusted (multiple times if required) to allow adequate time for the spread to recover. The same capital originally invested in the trade is simply repositioned to a new position via the roll adjutment. Also, by roll adjusting this spread to March, I can potentially create an iron Condor to generate additional profit opportunities. Strategic and opportunistic use of capital is the name of the game.
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