Want to short but wondering if we are headed to Higher highs

8. Juli 2016

I drew this chart last night and then then opening gapped up. I will short if we close the old gap but feel that a lot of people will be shorting the market at this level. At times like this I am cautious. I may create my position at much higher levels with a vertical spread like 217-218 45 days out as usual (depending on premiums). I am just going to look for other opinions on what people think the highest the market will go over the next month and a half. Good luck.

8. Juli 2016

Anmerkung

The gap at 211.90 closed and we crept up some more so I opened up multiple positions between 216 and 220 selling credit spreads for Aug 12th and 19th. NOW i want to see that massive opening gap get closed. We may go higher but Volume is not good, so in a week or two things will drop back down and I will close out. If we test new highs it will be painful but the premiums seemed to be worth the risk. Overall risking about 70k to make 20k.

11. Juli 2016

Anmerkung

Ok so I am now that we have gone up a bit I may wait for slight weakness and open several higher placed spreads in the 221 - 222 range. Still going to hold my other positions for another week to see if any lower gaps get filled.

12. Juli 2016

Anmerkung

Yeah. So when I drew that question mark on my chart I had thought to myself "worst case scenario"....so here we are at over 215 and because we got here so fast I am actually thinking about opening a couple of more positions up around 223 and higher....but the premiums don't seem as rich now. So maybe we will be seeing some down turn soon. Good luck. I am hibernating for now.