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Strategies & Market Trends : Gersh's Option trades
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To: Mark Johnson who wrote (637)4/13/2008 5:36:41 PM
From: Mark Johnson  Read Replies (1) of 652
 
Shares of GE hit the fan on Friday from a disappointment in earnings. The thing about this is that GE represents a good portion of the overall market and individual company’s.

I think the overall market will try to rebound but will have a tough time rebounding since there should be more earnings disappointments based on what happened with GE. If the market trys to rebound, I think shorting the Spiders (SPY) call options are a good bet. I really do not see the
Spiders trading above 137 when the options expire this week.
So, I like the idea of shorting the 137 April 137 calls which are presently bidding 33 cents and asking 35 cents.

If the market trys to rally on a fools rally you can cover the 137 calls at a loss and go hog wild on shorting the strike prices above that such as the 138 to 141 call options prices.

With GE being in a funk and that it was short on analyst (and internal)earnings expectations I just see the market having a hard time rallying here and like the idea of shorting the SPY April 137 calls.
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