Options – week of Jan. 19, 2016

Commentary for last week

The SP500 index had a continuation decline last week. It was the second bad week — second of two — for this year. Price reached last year’s low and made new lows in the intraday trading. At the end, the index managed to hold above last year’s low for closing. But the closing price didn’t change the bearish outlook.

Last week – ESH6 prices

Week endingOpenHighLowClose
Jan. 4-162037.752043.501910.001911.50
Jan. 11-161909.251946.501849.251876.50

Last week’s trades

ESH6- 60 minute bars

ESH6- 60 minute bars

Market sentiment was still on the downside last week. As a result, our trigger for selling Calls was never hit.

The trigger for selling Puts was hit Wednesday, but the short time to expiration reduced the premium. They were profitable but not wonderful. We sold Puts with a strike price at 1930 which expired OTM. As a result we retained the entire premium. Click the chart to enlarge.

 

This week:

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