INDU is approaching its major resistence at 11,000. We may hit 11,000 before 2004 ends even we will only have one trading seesion left on the calendar!
QQQQ has been around 40 a few times, it poses to break through the resistence and leaves this long base built over three years!
SPX looks more like INDU than QQQQ, but its major resistence is at 13,00 before next one at 1,400, still a long way to go. The trend is up.
SUNW is right now at exact 3.99 X 4.00. On this last trading day before the option expiration date for Oct, the underlying tends to be pinned to the strike price. I have sold some covered calls Oct 4C on SUNW to generate some cash in my IRA account. I’ll let them go expired or get called away.
QQQ has broken its uptrend line. Today’s move would look like a dead cat bounce after YHOO lost almost 12% in after-hour trading. Tomorrow will be a big gap down. I have reduced my puts on QQQ.
My Jul 20 Puts are under water, but Aug 22.5 Puts are doing OK. I will monitor closely tomorrow to see if I should seize the opportunity to close the Jul 20 Puts.
I’m also looking for opportunities to buy back some shares of MSFT for my long-term accounts.
QQQ has broken its uptrend line. Today’s move would look like a dead cat bounce after YHOO lost almost 12% in after-hour trading. Tomorrow will be a big gap down. I have reduced my puts on QQQ.
My Jul 20 Puts are under water, but Aug 22.5 Puts are doing OK. I will monitor closely tomorrow to see if I should seize the opportunity to close the Jul 20 Puts.
I’m also looking for opportunities to buy back some shares of MSFT for my long-term accounts.
Option strike price sometimes has interesting effect on the market during option expiration week. Looking at MSFT chart, we can see it slides towards 25. Based on the option trading volume data at Yahoo, there were 10,791 contracts (Apr04 25 Call) changing hands with 79,265 still outstanding, the heavest traded strike today. For premium sellers, it’s to their advantages to let the contract expire worthless, which means in this case that MSFT has to go below or at 25 to let Apr04 25 call contracts expire worthless. I have a small long position where I had sold some at 0.95-1.05 earlier and hold some until today I sold them at 0.7.