Replies to post #42069 on The TradingEdge

[NASARAVI]

Good morning Jerry

Thanks for your input

Based on the 2 or B top where will 3 or C end

Knowing 1 was 2593?

Regards.

[d-k]

Thanks Jerry. Your classes and commentary here are really helping me.

I am a covered call (CC) writer. I was using individual stocks & ETF like XBI, BABA, NFLX, WMT, SQ, SODA.

But environment has changed so, I am going to switch to SPY CC. Reason (1) Easy to watch 1 instead of multiple, (2) two expiration per week (3) less dependent on individual stock news (4) Topping is a process and will probably rounded top. So, we would go near high but may or may not exceed.

So, Yesterday I bought 100 shares at 268 & 270 & wrote deep in the money SPY 265 & 267 CC. Traded those CC based on ES chart 5 min RSI, Tick & A/D (all I learned from you). 265 CC got called out and in last 5 min SPY fell below 267. So, I keep 267 CC. So, now I have SPY 100 shares at 266. I now will write Friday CC.

[algol]

We did 5 waves down, ABC up and ABC down: 5-3-3. First time we failed at BBCL on the 60-min. I think we try again today and break to the upside. Next week is monthly OPEX, so they we will try to keep the market up till then. In any event, I will be looking for a short position again when, and if, we get to around 2760.
Trade safe folks!
Algol