Jun 242015

– SELL VERTICAL RUT JUL1 15 1310/1320 CALL @1.77
The russell is pretty darn over-bought compared to the other major indicies and it seems in need of a pull back. I’ll be looking for this option to expire worthless which will give me %100 profit if it will stay below 1310 by next Friday. This morning it has been selling off so it’s looking pretty good so far.
When swing trading these indicies you want to look for the price to go through the top or bottom bollinger band or 2 standard deviation range and look for a reversal. Not only has this blasted through the bollinger but it has also broke resistance, and I believe it is a considerable amount. Stochastics say over-bought and the DI+ is now turning over meaning buyers are leaving the market. When looking at the ADX it says it’s a weak trending market at 20.56 so a small pull back should be expected.


7/1/15 – $100 profit. Expired worthless. I really like the action on this trade and look forward to doing more.