• 172 days Will The ECB Continue To Hike Rates?
  • 172 days Forbes: Aramco Remains Largest Company In The Middle East
  • 174 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 573 days Could Crypto Overtake Traditional Investment?
  • 578 days Americans Still Quitting Jobs At Record Pace
  • 580 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 583 days Is The Dollar Too Strong?
  • 583 days Big Tech Disappoints Investors on Earnings Calls
  • 584 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 586 days China Is Quietly Trying To Distance Itself From Russia
  • 586 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 590 days Crypto Investors Won Big In 2021
  • 590 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 591 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 594 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 594 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 597 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 598 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 598 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 600 days Are NFTs About To Take Over Gaming?
What's Behind The Global EV Sales Slowdown?

What's Behind The Global EV Sales Slowdown?

An economic slowdown in many…

How The Ultra-Wealthy Are Using Art To Dodge Taxes

How The Ultra-Wealthy Are Using Art To Dodge Taxes

More freeports open around the…

  1. Home
  2. Markets
  3. Other


4/19/2008 5:55:26 PM

Click here to continue receiving our profitable trading advice for only $49.95/month.
Click here to save 20% by subscribing for a year for only $479.

This service is auto traded by a major brokerage, meaning you don't have to lift a finger to participate in the performance. Don't miss another trade. Subscribe today.

Our services' net portfolio gain for 2007 was 107.8%!
Angelo's last 3 trades in 2008 have returned over 30%!
For a full break up of this performance, CLICK HERE.

Summary of Position For April

We entered a April 1190/1180 Put Option Spread on March 13 and received a premium of $140 per spread. This equates to a net return of $137.68 per $1,000 of margin used or 13.77% after commissions for 5 weeks in the position (using Interactive Brokers commission rates). The return before commissions was 14%.

We attempted to capitalize on the strength in the market early on by doing a Call spread but we weren't able to get a fill at our desired strikes (there were subscribers that did however get this fill and would have achieved an even higher return for the month). In any event, we ended up with our second best monthly performance, and that's something to be grateful for.

Current Position:
On April 18th we sold an SPX May 1460(SXZEN)/1470(SXZEL) Call Option Spread for a net credit of $0.80. (We requested $0.65, and Interactive Brokers gave a higher premium due to the market gapping higher on open, please not the auto trades with Think or Swim did even better this time with a premium of $1.00)

The premium received is $80 per $1,000 of margin required per spread.

The strength in the market today helped us to get a better premium and it also moved us into Buy mode, I'll assess over the weekend if we are going to enter a Put spread on Monday.

SPX Chart - Bigger Picture

Longer term, we're getting to an interesting juncture, we have horizontal resistance around 1400 as well as the symmetrical down trend line around 1420. The indicators remain positive and 1430 is a possibility, however the fundamentals haven't changed and a move above the 1430 region would signify the resumption of the up trend and that seems unlikely at this point.

SPX Chart - Shorter Picture

What a difference a week makes, this time last week it seemed we were going to break down and head for 1275 again, but support held at 1325 and we added around 60 points. We visited both the lower and upper areas of the trading range that's been in force for several months now in the space of a week!

The question is, where to from here? It seems likely that we'll rise a little further on Monday but the overhead resistance is very strong and so I wouldn't be surprised to see a pull back again to the 1350 region. A mini up trend channel seems to be forming and this may be the path we'll follow in the short term.

For next week, support is 1340 and resistance is 1400.

The quote this week is from Ralph Waldo Emerson, "Adopt the pace of nature: her secret is patience."

Annual Subscription Offer

If you haven't taken up our annual subscription offer yet, you can help your monthly returns further by saving 20% on your subscription fees. By taking up our annual subscription offer, you get a year's service for the equivalent of $39.92 per month (or 20% less than the current monthly fee).

Please click on this link for your annual subscription: Annual Subscription

Please contact customer support if you have any issues at: customersupport@stockbarometer.com.

As a side note, the recommendation that was sent this morning would have been sent earlier however we had some technical difficulties with our site, my apologies for any inconvenience this may have caused.

Have a great weekend and feel free to email me at angelo@stockbarometer.com with any questions or comments.


Back to homepage

Leave a comment

Leave a comment