Expect a turbulent Week
12Jun2007 Filed under: General Author: OptionPunditAll the major markets were sold-off last week before rising on Friday. There are lot of things happening this week that one needs to be prepared for.
- Top of the list is Option expiration for the month of June. This Friday is the last trading day for all equities options. Keep in mind that Thursday is index options expirations day. Check out past postings both on blog as well as forum to find how to play this wonderful opportunity that happens only once a month.
- Rest of the week except today is packed with lot of economic data which can move market.
According to bloomberg Retail sales (Wed, 8:30 ET), PPI (Thu, 8:30ET), CPI (Fri, 8:30ET) and Industrial production (Fri, 9:15ET) will be key market moving indicators. So keep a close eye on these indicators and how market moves accordingly. - Mighty financials/brokers (LEH, GS, BSC) are announcing this week which pretty much set the pace for brokers index. Look out for it and see if you would like to play earnings. One strategy for fairly large moves is backspread that I had covered extensively earlier. Check this out.
Net, expect market to be be full of volatility and keep a close watch on your investments.
Profitable trading, OptionPundit
backspread, BSC, economic calendar, General, GS, LEH, Option expiration, option trading, Pin, stock pin, stock pinning
3 Responses to “Expect a turbulent Week”
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OPN Performance
This assumes a $10,000 starting and fully invested capital. The current phase started when OPNewsletter was re-opened in Jan'08 for Feb'08 expiration. OPN Month is counted as 3rd Friday of each month same as US Equity option expiration day. Comparison with S&P500 or Dow is not shown as it's unfair to expect from such large institution to deliver high returns. I would rather compare with my own target.
AP Biz News
- Consumer borrowing falls by $7.94B in November
- Retailers report dismal December sales
- Citi reaches deal with lawmakers on home loans
- FDA backs Vytorin after finishing study review
- Stocks mostly higher after mortgage deal
- Obama warns of dire consequences without stimulus
- Prosecutors say Madoff was ready to send out $173M
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Been There, Done That
vlada
June 12th, 2007 at 2:13 pm
Hello ,
LEH was fine today. How do you see the rest of brokerages? What do you think about MS?
Have a good time,
Vlada
Markets are at crossroads now | OptionPundit
June 13th, 2007 at 3:45 am
[...] Expect a turbulent Week [...]
OptionPundit
June 13th, 2007 at 3:54 am
they shd do good but the prices are already reflected. Unless they beat the “already built in expectation”, I don’t see any huge changes.