There are few special things about this week. Firstly let’s talk about “monthly income”, it’s great time to open some income trades i.e. those lovely condors, double diagonals, etc. But before opening, here are couple of things that I would like to keep in mind –

1. I need to select appropriate partner (underlying) I would like to dance with
2. I need to get good credit (this is an art more than science)
3. I would like to keep in mind that broad market is trending, and trending markets aren’t good friends for income traders. So I need to devise a plan that can take care of the trend. (markets are rather breaking-out to be precise)

Choose your partner carefully, there are many beautiful underlying(s) e.g. RUT, SPX, OEX, etc.

Now let’s talk about that “minority” i.e. speculative trades for my portfolio. There are several companies that are announcing results this week and move a lot, I mean MOVE A LOT to give one good money. Some of the name are - CTSH, LVS, PPDI, BOBJ, WIRE, AFFX, APOL, CI, AET, BRCM, ESRX, PNRA, NVT, BG and of course hot MasterCard MA. Though past performance doesn’t mean it will happen in future, but sometime it provides valuable hints.

When you profit, don’t forget to buy valentine gifts over this weekend for your sweet ones.

Profitable trading, OptionPundit