SPY Weekly Covered Short Put

posted in: Derivatives, Equities, Technicals | 0

In the past month, as U.S. stocks persistently climbed to high altitudes, air has progressively gotten thinner as far as shorts are concerned.  With that said, the action last Friday raises the odds that the latter is about to get … Continued

SPY Weekly Naked Call — Willing To Go Short Near Resistance

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During the September 15-30 reporting period, short interest on SPY, the SPDR S&P 500 ETF, dropped 15 percent period-over-period (Chart 1).  This was interesting because the ETF shed 2.9 percent during the period, having just tested the August 25th closing … Continued

Weekly Short Put On IWM Expecting Stability Near-Term

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Do non-commercials have it right?  Their net shorts in Russell 2000 futures peaked at 46,064 contracts on August 18, a week before stocks, including small-caps, bottomed.  Since then, they have gradually been reducing their bearish bias, with holdings at -27,708 … Continued

Weekly Sep 11th Covered Call On IWM

Later this morning, August’s NFIB (National Federation of Independent Business) optimism index is published.  July was 95.4, up 1.3 points month-over-month.  The index has been under pressure since the recovery high of 100.4 reached last December.  The last time it … Continued

Weekly Sep 11th ITM Covered Call On GLD

posted in: Commodities, Derivatives, Technicals | 0

Gold continues to act as if it expects a hike as soon as this month.  The FOMC meets on the 16th-17th.  On Friday, post-August jobs report, GLD, the SPDR Gold ETF, shed 0.3 percent.  The two-year Treasury yield was unchanged … Continued

IWM Weekly Covered Call — Again

posted in: Derivatives, Equities, Technicals | 0

It is damage control time for small-cap investors. When on August 14 August 21st weekly 119 puts were hypothetically sold for $0.92, IWM, the iShares Russell 2000 Index, was trading at $119.62.  If the short put got assigned, it was … Continued