Mr. OEX Call and a Follow-Through Bounce ~ The Risk Averse Alert

Wednesday, April 01, 2009

Mr. OEX Call and a Follow-Through Bounce

With higher highs off March bottom appearing imminent, I think odds are better than 50-50 old Mr. Market is dragged back down, keeping intact the past couple weeks sideways trade.

So, looks like I could be selling my April OEX 390 Call position with two weeks time value to spare.

OEX 5-min

395-400 ... maybe higher ... appears a reasonable target. It might be reached as soon as Thursday.

Technically, it's looking a bit like mid-December here. That's why I want to close out my speculative options position, sit back and see what develops.

Intermediate-term, everything still points higher. Hopefully it stays that way. So, stay tuned.

Fast Money
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Analysis centers on the stock market's path of least resistance. Long-term, this drives a simple strategy for safely investing a 401(k) for maximum profit. Intermediate-term, investing with stock index tracking-ETFs (both their long and short varieties) is advanced. Short-term, stock index options occasionally offer extraordinary profit opportunities when the stock market is moving along its projected path.

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