My Rationale on Why the Dow’s Shooting Up

by Options Sensei

After a little pressure on Friday, the Dow is shooting up this morning…

As I write this it has put on more than 280 points.  We’ll see where it ends up at close.

The Dow and S&P hit all-time highs last week, and they may again this week. 

As I said, we will see where things go as the week unfolds.

In the meantime, in Options360 we’ve placed two new trades that I am excited about.

While I can’t give you the actual trades, I am happy to share the rationale with you here – so you can look into the trades yourself if you’d like. 

  1. AMD had ‘blow-out’ earnings last week but like many tech names it sold off on the news.

    It is now approaching the $80 support level.  An area tends to chop around but should hold and give us an opportunity to employ a bullish diagonal spread with some decent premium collection over the next few weeks. 
  2. SPY has been grinding higher for the past month and there appears no reason for it to stop.  But it wouldn’t surprise me to get a hiccup in the next week or two.

    Let’s make use of the Monday, Wednesday, and Friday expirations to set up a position that will start as moderately bearish, hopefully, get paid off through some rolls this week, and ultimately leave us with a very low-cost downside put play.

I hope that helps you find some interesting and profitable trades for you this week. 

And don’t forget, to get all the details you just need to grab your Options360 trial membership for just $19.

You’ll get all my trade recommendations, plus 2 LIVE webinar training sessions…

And hundreds of hours of archived training sessions to help you become the best trader you can be

To Your Success,

Steve

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