Market Warp Up for Friday, April 1, 2016

by Jeff on April 1, 2016


No fooling, really. This is a genuine high level summary of the market this week with emphasis on my RUT Bear Call Spread and a few words on the Ford (F) and GLD simulated Covered Calls

I have an April expiration on RUT with the short contract at a strike of 1100. RUT closed today at 1117.68. So, what can I do? The trade is currently losing $1,185, but I can put off the loss to next month by rolling to a MAY -1100/+1120 and Condorizing it by adding a Bull Put spread at -970/+950. Theoretically, I will only take a small loss today in hopes that RUT will pull back between now and then and move under the 1100 strike. I’ll wait until the first part of next week before I decide – but I can’t wait any longer than Wednesday.

4-1-2016 4-23-34 PM

Next up I discuss the roll I did today on the simulated Covered Call on Ford (F). This morning my APR 12.75 Call was in the money (ITM), so I decided to roll to a JUN 12.75 Call for a total credit of $21. So, if the short Call stays ITM and the stock gets ‘called out’, I will make a total of 12.71% on the trade over a period of 8 month. What to you think of that, Auntie Yellen!

4-1-2016 4-31-43 PM

Finally, a few words on the real Covered Call on GLD – but not much since it’s way out of the money (OTM) and doesn’t expire until JUN

Click here to watch the video

Click here to watch the video

That’s it! Happy Trading




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