I closed out my short JUN20 Crude Oil 60-strike CALLs for 0.04 ($40). It was sold for 0.31, so the profit is $270.
(3/25/2020): At the moment I’m writing this, the economic recovery package is going to vote later today in the Senate but it seems the House vote will be delayed until tomorrow. – and it seems will be approved. (I hope.)
Hightower puts out research on markets/futures and yesterday I received a (non-subscriber) bulletin from them and am making it available for download at this link: HT or https://www.sellingCommodityOptions.com/HT.pdf and it has some spread option trades to consider, based on the market recovery. I do not endorse or ‘not endorse’ these trades but only pass them on to you in context that they sent them along.
Of course for investors who are willing to take the large risks betting on a quicker rather than prolonged recovery of the markets, there are many ways to do it. For example: selling PUTs on commodities like oil, grains (or buying CALLs on the same.) I won’t be personally using any of those at this time because of the uncertainty and inability for anyone to plot an accurate time-line for the events unfolding at this time.
In a few months, we will all be saying “why didn’t I __________” when we have the genius of hindsight. Experienced investors understand this is a constant experience of investors. For example: AAPL stock bottomed at 220 last Friday and today is trading for $253/share. It is the most widely held stock by all age groups of USA investors. I wouldn’t place any money on trades like this that I couldn’t live without; it’s just too risky, but surely there is opportunity there.
KO, AAPL and many other blue chip stocks are possibilities for great price recovery, and if buying them now doesn’t work out in the short term, they will surely recover over a longer period of time. (It is noon WED 3/25/2020) and the DJIA is up 2500 points since just yesterday morning in anticipation of the impact of the recovery stimulus package and options that foresee a not-to-distant end to the worst of the pandemic. I read where Governor Cuomo of New York State this morning, predicts the peak of the covid-19 hospitalizations won’t be for another three weeks. I think this is accurate and that more stock market volatility is a virtual certainty.
There is (near noon today) a figure for unemployment claims will be near 4 million this week; a number that almost certainly will be exceeded next week and beyond.
As I explained last week, I have suspended the membership requirements to access this blog/website – and all are welcomed to visit the site without any log-in requirements. Still, I could issue a trade or trades at any time and will send out a notification email when this happens.
I hope each of you and family/friends are safe and well. If you have any interest in learning-about and/or trading the new Micro E-Mini Stock Index Futures, please scroll down for details. Thank you. – Don
AN INVITATION: You are invited to visit my new YouTube Channel where there are over 22 videos available that teach home investors how to trade these new futures contracts. Just click the green/black button here to go to the free channel, or if you prefer I have two free playlists, also listed below that are an introduction for trading them.
You can trade the DJIA for fifty-cents a point. The S&P Micro for $5 a point and/or the NASDAQ100 Micro (my favorite) for only $2 a point, so you can see they are 1/10th the size of the regular E-Minis and have much less risk and cost to invest. Be careful out there and thank you. – Don
If you know anyone that you would like to be introduced to Futures trading, these new low cost contracts are a VERY AFFORDABLE way to learn futures trading. My playlists above are truly for ‘beginners’ to learn futures trading. Since being on ‘lock down’ many people are experimenting with them and I think they can be also very entertaining, though that’s not why they were introduced. Of course they are risky but at $2 a point on NASDAQ100 Micro Futures, one can afford to dabble with them if you are so inclined. Don’t risk any money you can’t afford to lose in this very volatile market. One of my mentors use to ask me, “Don, what do you call a horse race without a $2 bet?”… and his answer was, “Boring!” I would say the volatility right now has opportunity but a LOT of risk also – so be cautious out there no matter what you are trading.
Thank you. Stay well. – Don
The commentary and examples are for teaching purposes only and are not intended to be a trading or trade advisory service. Any investments, trades, and/or speculations made in light of the ideas, opinions, and/or forecasts, expressed or implied herein on the web site and/or newsletter, are committed at your own risk, financial or otherwise. Trading with leverage could lead to greater loss than your initial deposit. Trade at your own risk. Investors and traders are responsible for their own investment/trading decisions including entries, exits, position, sizing and use of stops or lack thereof. This is not a trade advisory service and is for educational purposes only. The content on the pages here is believed to be reliable - but we cannot guarantee it.