August 22, 2017

December Options Expiration Week is Upon Us

It’s finally here. The December expiration cycle ends on Friday and the upcoming week should be a wild one.

The push higher today was impressive. I have to admit I didn’t think the bulls had it in them to push the S&P’s to 1428 (/ES). The move pushed several of the highly-liquid ETFs I follow back into a short-term overbought state. Couple the overbought readings with several bumping up against strong overhead resistance and the pot odds start to lean more towards the bears. Look at the Euro-related ETFs, South Korea and the Emerging Markets for starters. I will discuss what to do in these situations and more in an upcoming subscribers only newsletter.

Admittedly, I would love to see a move lower over the next few days so that I can either adjust or exit a few bear call spreads in my portfolio. The recent rally, led mostly by financials, is testing my short strikes in SPY and FAS. So, I certainly wouldn’t mind a short-term reprieve tomorrow.

To those of you who have emailed me about my high-probabilty strategies I just wanted to let you know that I will be sending out an email over the coming days. I am very close to entering a few January and February positions so I want everyone to be able to have the opportunity to start 2013 off right. Stay tuned. And again, thank you for the overwhelming response. I look forward to sharing a prosperous 2013 with all of you.

If you haven’t emailed me, you can do so at crowderoptions(at) I still have a few spots available.

  • Tony Bombaci

    Outside of saving another commission…why just credit spreads instead of debit spreads?

  • acrowder

    I am not opposed to debit spreads, I just prefer to sell premium most of the time. Through the use of high-probability trades (out-of-the-money), credit spreads create the margin for error that I always speak of. Just one of many reasons.