July 21, 2017

Diagonal LEAPS Strategy Begins

We added our intial positions in the SPY Diagonal LEAPS strategy today in our test account (paper trading). We plan on following this strategy for most likely several months until our subscribers and community blog participants can gain a better understanding of how the strategy works. We hope this will be as educational as it is profitable. We sent out to our subscribers the basic trading rules and how and why we chose our positions. For the most part, our guidelines can carry over for use with any ETF. Our official trading guidelines will only be privy to paid newsletter subscribers. All totals reflect commissions through the standard Thinkorswim commission schedule.

Sell to open 2 SPY Oct07 152 calls

Buy to open 2 SPY Dec09 125 calls for $35.70 or $7,140.00

Sell to open 1 SPY Oct07 154 calls

Buy to open 1 SPY Dec09 125 calls for $36.88 or $3,688.00

Sell to open 1 SPY Oct07 151 calls

Buy to open 1 SPY Dec09 130 calls for $31.55 or $3,155.00

Buy to open 1 SPY Dec09 130 calls for $35.35 or $3,535.00

For a total capital outlay of $17,518.00 + $26.55 (commissions) = $17,544.55

We will discuss the positions in great detail over the coming days. This includes the Greeks, risk profile, adjustments, etc.

Overbought/Oversold for September 24, 2007

S&P (SPY) – 61.7 (neutral)

Russell 2000 (IWM) – 57.5 (neutral)

Dow (DIA) – 70.5 (overbought)

Nasdaq 100 (QQQQ) – 78.3 (overbought)

Oil Services (OIH) – 71.4 (overbought)

Newly added ETF’s – We have decided to extend the following overbought/oversold reading on the community blog until next week. We will follow the readings in the Insiders’ page (subscriber’s only) starting 10/1.

Core Sector List

Financials (XLF) – 45.2 (neutral)

Energy (XLE) – 84.2 (very overbought)

Cons. Cyclicals (XLY) – 44.3 (neutral)

Technology (XLK) – 73.4 (overbought)

Health Care (XLV) – 70.3 (overbought)

Materials (XLB) – 80.9 (very overbought)

Industrials (XLI) – 54.9 (neutral)

Cons. Staples (XLP) – 63.1 (neutral)

Telecom (TTH) – 71.7 (overbought)

Utilities (XLU) – 61.0 (neutral)

Gold (GLD) – 74.4 (overbought)

International

FTSE/XINHUA China 25 (FXI) – 90.0 (very overbought)

Latin America (ILF) – 79.6 (overbought)

MSCI EMU (EZU) – 72.6 (overbought)

Australia (EWA) – 81.2 (very overbought)

India (INP) – 85.4 (very overbought)

Commodities

Natural Gas (UNG) – 62.3 (neutral)

Agriculture (DBA) – 90.9 (very overbought)

Base Metal (DBB) – 63.9 (neutral)

Energy (DBE) – 81.4 (very overbought)

Prec Metal (DBP) – 81.6 (very overbought)

Okay, the plan is to follow a total of at least 25 major ETF’s is complete. Again, in the near future this list will only be available to subscribers to the newsletter/strategies on the Insiders’ page.  

We work hard to bring you our latest views, opinions and research on a daily basis. If you are a loyal reader and find our thoughts useful please show us your support by joining our newsletter service. We currently follow 3 stock options strategies in our investment newsletter, the ETF Extremes, SPX Short Iron Condor and SPY Diagonal LEAP.

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Andrew Crowder, Chief Investment Strategist, www.crowderinvestments.com