I bought SPY at 111.64, and sold-to-open SPY 108 June-30 expiration calls at 4.08 for a net investment (debit) of 107.58. I used the quarterly SPY options because I could go considerably deeper in the money with the calls and still get a premium that is close to the likely SPY dividend for this quarter (around $0.50). Schwab does not appear to …
Bought SPY 109 July calls (17-July expiration) at 2.90.
Although recent intra-day lows have crossed the 2010 trendline in the graph below I hallucinated in February we haven’t had a SPY closing yet that has crossed that line (104.87 for 9-June-2010). My crystal ball has been notably hazy recently, but I’m still thinking this is a correction and not the beginning of a bear market. I continue to be bearish on the prospects …
I’m optimistic that this generation of containment device will work–once they manage to trim the pipe. Bought BP July (17-July expiration) calls at 40 for 2.84. BP is currently trading at 38.34.
On June 1st 2004 SPY was well on its way recovering from a 5% correction that started in May. The jury is still out on whether this year’s 12% correction (based on closing values) is over, or just the beginning of a bear market. Six years ago we didn’t have the PIIGS (Portugal, Italy, Ireland, Greece, and Spain) in financial turmoil, or a big …
