Commentary on last week
The ES made a nice bonce last week, fueled in part by good earnings reports from a handful of large companies. It totally recovered the loss from the previous week and closed near the high of the week and the high of the previous week. A resistance area is forming around that high, near 2115-2117.
Last week’s trades.
The Puts we sold with strikes below 2055 all expired worthless and the full premium was profit. The Calls we sold with a 2110 strike were exercised for a loss of 1.75 minus the premium collected. The Calls at higher strikes all expired worthless and the full premium was profit.
This week:
This week could be volatile. The Federal Open Market Committee’s (FOMC) latest policy decision is due on Wednesday, a big batch of earnings reports will be released during the week, and the ES monthly and weekly options will expire on Thursday and Friday. Expect to see some price swings.
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