Options – week of June 13, 2016

Last week

Week endingOpenHighLowClose
June 3, 20162100.002106.002082.752097.25
June 10, 20162097.502119.752079.502087.00

 Commentary for last week

SP500 index had an ultra-short-term pullback move last week after it failed to test the overhead resistance at the all-time highs. That failure may be connected to the FOMC meeting and announcement this week.

Last week’s trades

160610-es-60a

ESM6 June 10, 2016. 60-minute bars.

The market activity last week was excellent for selling Calls. The price broke above Nat’s trigger point (2105) early in the week, so there was lots of time premium left, and stayed up through Thursday, generating lots of hope among traders that the market would reach a new high.

But in overnight trading Thursday and early Friday the market gapped down and went down dramatically during the day session.

By the end of the week the price was below the weekly open, and all of the options we sold expired out-of-the-money, allowing us to retain the entire premium.

 

This week:

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