Hey Beeble,
Just be a bit more patient. Not much longer. In general MAY puts look fine.
The DOW is moving stong, but look how the NAZ and SPX is limping.
I checked my short-term technicals, per yesterdays data, just this morning and the overall market is basicly in the mid-range, but originally thought it would be closer to the upper mid-range. From this point on the technicals it should take 2 more days, maximum 3 days to hit CLASS SELL region, if it does not turn earlier or just remains flat, which it can also do.
So such has pushed the timing of the top back about one day, so for now its closer to WED/THU for the interim top to form.
Some sort of pullback should start within days, but just a bit of advice, suggest that we dont look for a big whammy. If it happens - it happens. If one is playing MAY PUTs and the market starts to decline, but one wants to hold on for the bigger drop, can I suggest selling options creating a spread. Sure it will limit your gain if the market really tanks but if it doesnt you will still be in a favorable position. That will be my strategy - Im just not looking for the big whammy - but if it occurs, good - I have some more profit.
Its a little like chicken trading but will allow for additional profit with less risk.
Seeya |
