SUN

I just want to give a little rationale why I purchased SUN...I think commodities and commodity related stocks will rise into summer. The trend is on my side and I would like to run with it. I think the market is taking a little breather today which gives me a perfect entry point for this one. I bought the puts just in case I am wrong. As you can see from previous blog posts, I have been neutral to slightly bearish on the markets. So buying puts for protection on any long position is the smart thing to do.

SRS

SRS - I closed some more of my position in SRS PUTS now for a 57% GAIN

SUN

SUN - I opened a long position in SUN stock outright at $29.65. I also purchased the JUN26 (SUNRL) PUTS @ 90 cents for protection in case it goes down. Bought 120% of my position in puts.

I will sell JUN30 calls when the stock reaches $32 in the next few days.

NDAQ

NDAQ - Earnings were not that bad, so I am opening a cash secured put position JUN17.50 PUTS

Sell to open NQDRT @ $.85.

I think we have to be a little more careful though with the markets at these levels.

If it drops to $18, I would consider adding more to it. I will keep you posted.

Green Shoots

How many times a day is the word 'Green Shoots' used on CNBC. Maybe 100 times or so a day. It reminds me of Moral Hazard, Capitulation, etc. Those words were used in mass during the market downturn.

It makes me wonder if we have reached the top of this run now since they are using the word 'Green Shoots' so much.

What do you think?

S&P 915

Stock Market Commentary

Boy, was I wrong about the market direction. S&P at 900. Let's see where we close today.

SRS

I added more naked MAY21 PUTS to my position @$1.00. These expire in 9 days. I hope to gain all 100% by letting them go worthless.

If I am put the stock at $21, I will be able to sell the calls at a high premium for June.

I'll keep you posted.

Stock Market Commentary

Good Morning.

I still believe we will see a pullback to the low S&P 820's. Major earnings releases are done. This could lead to some profit taking. I am looking for some confirmation before I add more bearish positions.

The SRS trade is working well. Keep in mind, this is a bearish trade. If your option reaches $.25 this week, bail out and take your GAINS!!!

I will keep you posted on trading ideas during the week.

SGR

SGR - Closed my position for a 35% GAIN.

SRS

SRS - Closed some of my MAY20 PUTS position @$.55 for a 50% GAIN.

MS

MS has tracked back up to the daily trend line. It broke the trend last week and I missed the trade. It might be setting up for another chance at a short. Just watch your smaller charts for signs of weakening and possibly short the stock. Stress test results next week could make MS very volatile. Keep that in mind. You can by calls for protection relatively cheap so you can sleep at night.

The $26-$27 area is resistance with 3 tests in the last 2 months or so. Stop out at $28 if the short goes against you because it could breakout from there.

SGR

SGR (Shaw Group Inc) - Opened a cash secured put position on JUN25 PUTS SGRRE @ $1.40

SELL TO OPEN SGRRE at $1.40

This is a riskier trade than normal, but I think its a great entry area. The news that drove it down this low is really not that bad. It is back down to the pre-reaction level. $25 is well below the $27 support area. I would be happy owning this company at $25 is I am put the stock. My cost basis would be $23.60.

I will update once the order is filled.