Tuesday, October 26, 2010

Technical Top - Time to benefit from hype

After this long bull run, it is time for the market to take a breather. The USD is at a historical support point, fiscal stimulus is peaking. It is enough to take a risk that the SPY (SSO) will not rise another 6% (12%) in the next three months.

The author has entered in the following position.

Sell SSO Jan 2011 $47 Call at $1.22
Buy SSO Jan 2011 $48 Call at $.98

Net credit .24 with $1 risk.

4 comments:

Lockstep said...

Holding. I am still optimistic that the bull market has run out of steam.

Lockstep said...

Holding. I am still expecting a minor correction to create an opportunity to exit this position at a profit.

Lockstep said...

Wrong again. Position closed on Jan 20 with SSO at 49.

76% loss.

PENNY STOCK INVESTMENTS said...

Their sure is a lot of hype.