Our trusty May 410 Call was profitable again. We had recommended a top sell at 11.40, hit it, and for some traders they even held out to 12.40 by 3.30 p.m. Traders that bought yesterday could have enjoyed a 32% profit and those holding buys from earlier days up to 50%.
That's 8 profits this week so far, but we're losing on our hedge put, what should soon be the strong string, and two buys have been made. We'll list an additional new put purchase for buy, at a higher strike, for traders just entering the market, as we continue to believe a consolidation is due. With the strength of this market this sell off may be only to 7800-7900 range again, as we saw in the drop off yesterday. But day traders were astute yesterday, and some reported .50 profits on this position in the morning downturn. We'll move to a different put for any new buyers, and now list an OTM call for traders wanting to dual trade.
In a market that has been flatlining as it has, we need the "hedge" to a straddle, and no one can complain about our profits this week.
Longer term, Floyd is bullish. The financial sector smoke and mirrors game is complex, but people are beginning to buy mortgages, and grim news (which is constant) seems to be greeted with more optimism, a sign of a longer term strength. In www.bluechipoptions.com, our sister publication, Floyd has been leading with calls on several sectors and recommending new stock buys.
There are now rumors of mergers coming back (Heinz and Campbell Soup, Nestle and Hershey?....) traders are talking of mergers again, IPO's (Rosetta Stone out yesterday) are getting some attention, and longer term we are bullish. Short term, we believe consolidation is healthy, and would like to see a strong enough pullback to allow profit taking, and new buys.......so the market can breathe.
It's expiry day. History has shown upside.
Floydian Therapy:
If you are holding a fragile egg and are afraid of dropping it, you are afraid not of the egg but of the consequences.
Look for God, Gurus say, like a man with his head on fire looks on water.
God may not be in a book, and I think becomes a limited God when we believe he/she is.
There are only two questions that human beings have ever fought over, all through history:
How much do you love me?
Who’s in charge?
These two questions of love and control undo us all, trip us up, and cause war, grief and suffering.
There are easy answers to these questions.
Join me if you are interested in Private Counseling with Floydian Therapy:
Write me at : floydiantherapy@gmail.com
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