Mid-day Update: A Day Late
Posted by vikingtrader
Hope everyone is having a profitable Wednesday. Today feels like what yesterday should have been if not for the Syria news that caused stocks to pare most of their gains on the day. Markets are up nearly 1% today with the Nasdaq leading the way most of the day. $SPY has been camped near $166 for much of the last hour or two, and it seems to be running into decent resistance at this level intraday. We took a small short position via $166 weekly puts for a cost of $.88 with a $SPY contingent stop just above the high of the day at $166.05. Our downside targets should the market roll over are roughly $165.59 and $165.38. Given the uncertainty regarding Syria and pending news from Washington regarding our course of action in the region, we believe this position presents a low-risk, high-reward set up should we get some definitive statements from political leaders.
As for our other positions, we have seen our $T and $TAP puts slide a bit as those stocks have risen with the broader market, but $AAPL has shown commitment today and is holding up well. $TSLA has been in the spotlight as well after Goldman did a complete 180 on its stance on the firm, initiating a buy rating after panning the stock roughly $70 ago (it wouldn’t surprise us to see Goldman dump $TSLA shares as a result, but that’s purely speculation. Wouldn’t be the first time they’ve done something like that, though). Some tech bellwethers have languished some today, including both $FB and $TSLA (despite the upgrade), while $NFLX and $AMZN have been fairly strong. $LNKD tried to rally after selling off following the announcement of its new equity offering, but it could not break out.
$SPY is selling off as I write – gotta go monitor our positions. Best of luck this afternoon, everyone.