Stops and Options

The Stops and Options website, www.stopsandoptions.com , has been updated recently to incorporate a new filter in the trade set ups. Take a look at your earliest convenience. As I mentioned the other day, these new trade setups are being automated to give more exact and complete signals across more markets.

I feel the stock indexes are a good place for option writing again after a very tough year or so. Volatility is still relatively high (even with today's large decline) and liquidity is very good in the mini sp options. Many clients have been short both put and call spreads which limits exposure but still takes advantage of the time decay while the market trades between the strikes. That, of course, can change but I think can be managed.

We have so far had a successful re-test of the November lows in the SP's and we await a Presidential speech tonight, but today's rally brings us back to levels where selling calls (and call spreads) should be considered.

There is a substantial risk of loss in trading commodity futures, options and foreign exchange products. Past performance is not indicative of future results