S&P Back To 1350, Up >7.3% YTD (6 Weeks)

A kind of boring today in reaction to Greece voting to approve austerity measures. This is like a junkie saying "sure I'll get better....after my next fix". This "fix" for Greece would be the latest round of bailout funds. Today was merely a vote, now Greece has to line out how it actually going to implement the cuts. Now it gets interesting.....

The Market was positive on the news grinding higher throughout the day. However, Markets were unable to to recover all Friday's losses and/or make new highs; excluding QQQ which made a new high by few cents, $0.15 to be exact. SPY closed with a doji candlestick pattern just like last Thursday. The upward bias may continue through Wednesday, which is the anticipated approval of the Greek approval of austerity, and possibly Friday OpEx.

I issued a closing order today for Friday's QQQ Bull Put Spread but only one Broker fill occurred: TradingBlock. The order will remain open GTC and should fill tomorrow. The profit from this quick scalp trade will help offset some of the loss being reflected in the QQQ Bear Call Spread. The Bear Call Spread will be adjusted later this week prior to OpEx. Once adjusted, I can sell more puts, if I deem safe to do so, to generate additional revenue while we wait for the Calls to recover. Rinse & repeat.

The market continues to feel heavy but also continues to plod higher on a low volume grind. That is fine with me as if it continues higher it merely gets more and more overbought. I will simply adjust my positions to March and wait for my time to strike. I couldn't believe actually heard some talking heads this am discussing how asset managers are not chasing the here due to the rally of late. Gee, what a concept.

The Gamma & Delta (option Greeks) of my current Feb spreads are high due to the underlyings current prices and the distance to Feb OpEx (4 days). I am expecting to use this sensitivity to my advantage on any weakness with the SPY having trouble at 1350 again; although it may be posturing for a blow-off to 1360. The S&P is at a pretty pivotal juncture yet again closing at 1350. If no weakness occurs, due to the outlawing of down days, then no worries and I will simply roll to March strikes before OpEx on Friday. it will be an interesting rest of the week. Strap in and keep all arms and legs in the vehicle at all times!

Navigate wisely and stay profitable, my friends. Happy trading!

+4.60% YTD BookingAlpha Monthly Advisory

+6.55% YTD BookingAlpha Weekly Advisory

vs.

+7.38% YTD S&P 500

See Trading Record

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