Happy May Options Expiration Friday!
We have two option positions that expire today.
There’s nothing you need to do, but I will address those in a few minutes.
We’re seeing odd price action today because it’s monthly options expiration, which is like a leaf blowing around.
This happens because option positions that expire in-the-money on today’s market close need to be rolled forward or closed.
All three major indices are ending the week lower as financials continue to weigh on the S&P 500.
Looking at the market Vs. the economic impact of the virus is the complete opposite.
Layoffs continue with another 3 million reported this week, bringing the total to 33.5 million Americans without work.
Ending the shut down is long overdue, but it feels like we are living in an episode of the Twilight Zone.
Earlier, I read an article that a Michelin 3-Star restaurant will sit mannequins at tables to make social distancing less lonely.
That disconnect is due to the fed flooding the markets with money and purchasing assets.
That’s why when it comes to being active in the markets, we must do our best to ignore the noise and our opinions.
Winning is the only thing that matters!
With this week’s weakness, the fear gauge for the S&P 500, known as the CBOE Market Volatility Index (VIX) is holding at 32.
Volatility does create opportunity as we saw last week with closing out two winners.
Unfortunately, this week we end on the wrong side with two positions that will expire worthlessly, so let’s talk shop.
Right now, our open positions are:
As always, keep sending your questions and feedback to [email protected]
Have a great weekend and I’ll have a new trade for you on Monday morning.