Daily Newsletter

I have no positions in play:

I believe we’ll see a very choppy summer period and might try to take advantage of Weekly Short Iron Condors when we get the right signals. 

I have no current positions:

Calendar spreads are good for markets in quiet/trending character. If the market reverts back to quiet/trending, then I’ll look to continue this method; if we see the daily chart go into exhaustion I’ll set up a back week calendar. 

The calendar spread tracking sheet is available for your download here. Yes, if you follow the math in the sheet, all of the numbers account for commissions in and out of the trade. Please note: If you trade these positions please keep the size small, to the point where you “do not care” about the success or failure of this position.

I have the following positions in play:

• SLV Stock – I have 1000 shares of the SLV that was assigned at the $15 level.  I sold the SLV 19JUL $15 calls (6/20) for $.15 credit. Per yesterday’s advisory I closed/rolled these options down for $.13 and opened up new SLV 30AUG $16 calls for $.16 credit, or a $.03 net credit on the roll. 
• CSCO – I sold the 16AUG $50 puts (6/10) for a $.64 credit. I will look to close this one for $.05 to $.10 debit. 

We’ll see if any subsequent pullbacks in the short term allow better entries. 

The Bear appears to be over. In the near term I expect to see large consolidation swings, which might provide “value” entries for these coins on a dip. 

Investors should currently be looking to find technical entries to warehouse BTC/ETH/LTC assets for eventual trades on Alt-coins. You should also be looking to devices like “trezor” or other cold-storage devices to keep your assets off of the network, or other secure wallet such as Navcoin. Relying on the security of your broker is no longer good enough; no one can log into your ETrade account and “steal” your stock assets, but the whole nature of Cryptocurrencies and their portability means that someone can grab your assets and transfer them elsewhere. I will continue to discuss the tradingview platform in daily videos as I think that it is currently the best way to chart the “big three.”

From Friday’s close at SPY 300.65, there is a +/-3.272 EM into this coming Friday; this is somewhat smaller than last week’s 3.423 EM. The EM targets for this Friday’s close are 303.92 to the upside, and 297.38 to the downside. 

I mentioned yesterday to “Watch for a test of the lower EM tomorrow that holds; we could play a 19JUL call option against it.” I took the SPY 19JUL 297.5 call long for $1.06, and sold it later in the day for $1.57, creating a net $49/contract profit, or a 46% return. 

I will start playing directional bear spreads once we see upside exhaustion on more than one timeframe. 

The scan that I discussed in the 8/4/2018 video is available to download for thinkorswim here: http://tos.mx/OvdVnz I will also be adding a second Larry Connors scan to this section as well; here is the Connors Crash scan: http://tos.mx/BhHuKL

I have the following positions in play at this time:

• PEP 9AUG 133/134 Debit Call Spread (7/12) entered for a $.50 debit and will look for 50%.
• GLD 16AUG 133/134 Debit Call Spread (7/15) was entered for a $.44 debit and will look for a 50% return. If we are close to this level tomorrow I’ll just close the position. 

No new entries for tomorrow.

The “Hindenburg Strategy” is meant to capture “value” from successive corrections that lead up to the final “death spiral” with a Bear Market. The basic principle is to buy 3-month out long puts on the SPY, and to finance those puts by the sale of credit spreads. 

I have no positions at this time.