onsdag 20. oktober 2010

Monday 18th of October

New multi month high in the S&P futures (ES) making a high of 1182.25. However it looks like a no demand bar being a narrow up bar closing on the highs with relatively low volume, at least lower than previous 2 bars. The lower the volume is the stronger the likelihood of a no demand bar. The confirmation of the no demand bar should be a wide down bar on increasing volume within the next 2 sessions.
The key resistance levels I see are 1198 and 1207, to the downside I have 1150 and 1127. To keep it simple one can say that as long as we don't have a daily close below 1163 the outlook is bullish and for a test of 1198 to 1207. Trading wise I made 14 points in the S&P futures trading mostly to the long side. Also the volatility dropped and short options lost value and theta so at the end of the day the portfolio rose 1.79%, pretty good.
I made no adjustments to the options portfolio in the ES.
However I did an earnings play on Apple (APPL).
I bot the 22OCT expiration strike at 320 x1, sold 2x330 22OCT call and bot 1x 22OCT 340 calls, for a debit of 1.24 per contract. Need a decent up move for this structure to make money on the earnings from Apple after today's close.

That is all for now, take care.

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