Good morning!
Speaking of manipulation, AAPL surprisingly taking a huge dive back to $100 this morning. No particular news other than rumors of new products so I like the $100 line for a bounce if you are into day trading and, otherwise:
- Sell 5 AAPL 2018 $85 puts for $9.20 ($4,600)
- Buy 10 AAPL 2018 $90 calls for $20 ($20,000)
- Sell 10 AAPL 2018 $110 calls for $11.30 ($11,300)
That's net $4,100 on the $20,000 spread that's $10,000 in the money already and your worst case is owning AAPL at net $93.20 (because we're only selling 5 shorts so the cash is double distributed). Of course that balances out with the much lower obligation, which makes it more palatable for IRAs and such (or anyone who considers making $15,900 to be a good 2-year investment).
Big Chart - failure at the 200 dmas - we'll probably see how the 50 dmas hold up, starting with Nasdaq 4,250 - not good if that fails!
Notice how Commercial Hedges have gone negative but traders haven't picked up on it yet. You can stay positive and hope the Big Boys are wrong.... I guess....
Ouch, and gold continues to collapse with the Dollar only at 97.50. We tried to catch a bounce earlier but it was no play as we didn't get the test. Now it's a clear failure:
Oil holding $37 heading into inventories. API showed a 3M build(ish) so any kind of draw (net) in EIA will be a huge plus and refiners are in maintenance mode now so we should see a good draw in gasoline, though they'll call it demand, which is total BS, so maybe a shorting opportunity at 1pm, when the detailed report is out.
Watch Brent $40, of course!
Spitting Cobras/Strether - Sadly, yes but too soon to call it.
