Options – week of March 7, 2016

 Last week

 

Week endingOpenHighLowClose
Feb, 26 20161911.001968.751886.751941.25
Mar. 4, 20161943.002007.501920.751994.75

 Commentary for last week

SP500 index moved above last December’s low at 1993.26 for testing and had a third week of gains. The price action was bullish, and option traders helped to hold the index up.

Last week’s trades

160304-ES-60

ESH6 Mar. 4, 2016. 60-minute bars

The ES made a strong rally last week, and broke above the strike price for two of the Calls we sold.

But a retracement on Friday pulled the price back down below the strike — by one tick! — for the close, and all of the options we sold expired out-of-the-money, allowing us to retain the entire premium.

However it was a scary week to trade and some traders covered Friday ahead of the close. They may have suffered losses as a result.

 

This week

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