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My Rationale on Why the Dow’s Shooting Up

My Rationale on Why the Dow’s Shooting Up

Posted On May 3, 2021 1:42 pm
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After a little pressure on Friday, the Dow is shooting up this morning…

As I write this it has put on more than 280 points.  We’ll see where it ends up at close.

The Dow and S&P hit all-time highs last week, and they may again this week. 

As I said, we will see where things go as the week unfolds.

In the meantime, in Options360 we’ve placed two new trades that I am excited about.

While I can’t give you the actual trades, I am happy to share the rationale with you here – so you can look into the trades yourself if you’d like. 

  1. AMD had ‘blow-out’ earnings last week but like many tech names it sold off on the news.

    It is now approaching the $80 support level.  An area tends to chop around but should hold and give us an opportunity to employ a bullish diagonal spread with some decent premium collection over the next few weeks.

  2. SPY has been grinding higher for the past month and there appears no reason for it to stop.  But it wouldn’t surprise me to get a hiccup in the next week or two.

    Let’s make use of the Monday, Wednesday, and Friday expirations to set up a position that will start as moderately bearish, hopefully, get paid off through some rolls this week, and ultimately leave us with a very low-cost downside put play.

I hope that helps you find some interesting and profitable trades for you this week. 

And don’t forget, to get all the details you just need to grab your Options360 trial membership for just $19.

You’ll get all my trade recommendations, plus 2 LIVE webinar training sessions…

And hundreds of hours of archived training sessions to help you become the best trader you can be

To Your Success,

Steve

About author

Steve Smith
Steve Smith

Steve Smith have been involved in all facets of the investment industry in a variety of roles ranging from speculator, educator, manager and advisor. This has taken him from the trading floors of Chicago to hedge funds on Wall Street to the world online. From 1987 to 1996, he served as a market maker at the Chicago Board of Options Exchange (CBOE) and Chicago Board of Trade (CBOT). From 1997 to 2007, he was a Senior Columnist and Managing Editor for TheStreet.com, handling their Option Alert and Short Report newsletters. The Option Alert was awarded the MIN “best business newsletter” in 2006. From 2009 to 2013, Smith was a Senior Columnist and Managing Editor for Minyanville’s OptionSmith newsletter, as well as a Risk Manager Consultant for New Vernon Capital LLC. Smith acted as an advisor to build models and option strategies to reduce portfolio exposure and enhance returns for the four main funds. Since 2015, he has worked for Adam Mesh Trading Group. There, he has managed Options360 and Earning 360, been co-leader of Option Academy, and contributed to The Option Specialist website.

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