Carley Garner
09-12-2008, 04:13 PM
September 12th, 2008
Lan Turner of Gecko Software interviewed by CFRA, now posted on www.CarleyGarnerTrading.com !
Quadruple witching and Lehman news looming....
Overall, trade was mixed on Wall Street as investors are trying to digest this morning's week retail sales data and the potential Lehman buyout. Luckily for the bulls, gains in utilities, materials and energy stocks helped to offset turmoil in the financials.
As Lehman officials are scurrying to line up a buyer or a source of liquidity, the market is battering shares of the firm. After falling over 40% on Thursday, shares experienced another double digit loss on a percentage basis. The market seems to be of the opinion that the number 4 investment bank in the country will have found a "deal" over the weekend. However, at this point it is all speculation as Lehman and the government are being relatively tight lipped.
Whether or not the market gets a boost from news of a Lehman deal is yet to be seen, but it is possible that investors will be asking "who's next" before getting to excited We now know that the relief rally following the Bear Stearns "bail out" didn't last.
In economic news, the largest drop in prices at the wholesale level (Producer Price Index) wasn't enough to entice retail buying. According to the Labor Department, whole sale prices dropped .9% last month. Much of the drop can be attributed to lower energy costs.
Some were hoping that lower energy costs would lead to looser wallets at our shopping malls. On the contrary, the Commerce Department reported that retail sales dipped .3% in the month of August.
It is Friday and I am exhausted...sorry so brief. Have a great weekend!
Please note: A mini S&P chart is used because it is better for charting purposes, but trade recommendations are based the full sized S&P unless otherwise noted.
S&P Futures and Options Trade Recommendations
**There is unlimited risk in naked option selling and futures trading
Position Trade -
September 5 - Try selling the September 1160 put for $4 or better, it will take continued weakness to get filled.
September 9 - If you were trading the mini version, you should have been filled on this today. Those trading the full sized contract likely were not filled and should keep the order working in tomorrow's session. We are giving the market plenty of room to move, but this must be handled with care.
September 11 - I recommend placing an order to buy this option back for a $1 in premium, this would be a profit of $150 on each mini and $750 on each full sized before commissions and fees and assuming that you are able to get filled at the prices noted.
· This option traded at $1, but didn't go through it. You likely weren't filled, keep the order working on Monday but don't get greedy. If it costs a little more, take your profit and run.
Please note: A mini-sized Dow chart is used because it is better for charting purposes, but trade recommendations are based the full sized Dow unless otherwise noted.
Dow Futures and Options Trade Recommendations
**There is unlimited risk in naked option selling and futures trading
Position Trade -
September 5 - Sell the September Dow 10,600 puts for 50 or better. This can be done in the mini or the full sized. Call me for additional guidance.
Please note: A mini-NASDAQ chart is used because it is better for charting purposes, trade recommendations will denote whether a mini or full sized contract should be used.
NASDAQ Futures and Options Trade Recommendations
**There is unlimited risk in naked option selling and futures trading
Swing Trade -
Buy 1 December Mini NASDAQ at 1715
Position Trade -
August 1 - If you took our advice, you would be long the September e-mini NASDAQ 1670 puts for about 20 points or $400.
August 12 - Not off to a great start, but things may begin to look better from here.
September 4 - These may come back to life!
September 5 - Place an order to sell this put for 20 or better in an attempt to get your money back...
Carley Garner
Senior Analyst / Commodity Broker
DeCarley Trading
cgarner@DeCarleyTrading.com
1-866-790-TRADE
Local : 702-947-0701
www.DeCarleyTrading.com
There is substantial risk of loss in trading futures and options.
Past performance is not indicative of future results. The information and data in this report were obtained from sources considered reliable. Their accuracy or completeness is not guaranteed and the giving of the same is not to be deemed as an offer or solicitation on our part with respect to the sale or purchase of any securities or commodities. Any decision to purchase or sell as a result of the opinions expressed in this report will be the full responsibility of the person authorizing such transaction.
Lan Turner of Gecko Software interviewed by CFRA, now posted on www.CarleyGarnerTrading.com !
Quadruple witching and Lehman news looming....
Overall, trade was mixed on Wall Street as investors are trying to digest this morning's week retail sales data and the potential Lehman buyout. Luckily for the bulls, gains in utilities, materials and energy stocks helped to offset turmoil in the financials.
As Lehman officials are scurrying to line up a buyer or a source of liquidity, the market is battering shares of the firm. After falling over 40% on Thursday, shares experienced another double digit loss on a percentage basis. The market seems to be of the opinion that the number 4 investment bank in the country will have found a "deal" over the weekend. However, at this point it is all speculation as Lehman and the government are being relatively tight lipped.
Whether or not the market gets a boost from news of a Lehman deal is yet to be seen, but it is possible that investors will be asking "who's next" before getting to excited We now know that the relief rally following the Bear Stearns "bail out" didn't last.
In economic news, the largest drop in prices at the wholesale level (Producer Price Index) wasn't enough to entice retail buying. According to the Labor Department, whole sale prices dropped .9% last month. Much of the drop can be attributed to lower energy costs.
Some were hoping that lower energy costs would lead to looser wallets at our shopping malls. On the contrary, the Commerce Department reported that retail sales dipped .3% in the month of August.
It is Friday and I am exhausted...sorry so brief. Have a great weekend!
Please note: A mini S&P chart is used because it is better for charting purposes, but trade recommendations are based the full sized S&P unless otherwise noted.
S&P Futures and Options Trade Recommendations
**There is unlimited risk in naked option selling and futures trading
Position Trade -
September 5 - Try selling the September 1160 put for $4 or better, it will take continued weakness to get filled.
September 9 - If you were trading the mini version, you should have been filled on this today. Those trading the full sized contract likely were not filled and should keep the order working in tomorrow's session. We are giving the market plenty of room to move, but this must be handled with care.
September 11 - I recommend placing an order to buy this option back for a $1 in premium, this would be a profit of $150 on each mini and $750 on each full sized before commissions and fees and assuming that you are able to get filled at the prices noted.
· This option traded at $1, but didn't go through it. You likely weren't filled, keep the order working on Monday but don't get greedy. If it costs a little more, take your profit and run.
Please note: A mini-sized Dow chart is used because it is better for charting purposes, but trade recommendations are based the full sized Dow unless otherwise noted.
Dow Futures and Options Trade Recommendations
**There is unlimited risk in naked option selling and futures trading
Position Trade -
September 5 - Sell the September Dow 10,600 puts for 50 or better. This can be done in the mini or the full sized. Call me for additional guidance.
Please note: A mini-NASDAQ chart is used because it is better for charting purposes, trade recommendations will denote whether a mini or full sized contract should be used.
NASDAQ Futures and Options Trade Recommendations
**There is unlimited risk in naked option selling and futures trading
Swing Trade -
Buy 1 December Mini NASDAQ at 1715
Position Trade -
August 1 - If you took our advice, you would be long the September e-mini NASDAQ 1670 puts for about 20 points or $400.
August 12 - Not off to a great start, but things may begin to look better from here.
September 4 - These may come back to life!
September 5 - Place an order to sell this put for 20 or better in an attempt to get your money back...
Carley Garner
Senior Analyst / Commodity Broker
DeCarley Trading
cgarner@DeCarleyTrading.com
1-866-790-TRADE
Local : 702-947-0701
www.DeCarleyTrading.com
There is substantial risk of loss in trading futures and options.
Past performance is not indicative of future results. The information and data in this report were obtained from sources considered reliable. Their accuracy or completeness is not guaranteed and the giving of the same is not to be deemed as an offer or solicitation on our part with respect to the sale or purchase of any securities or commodities. Any decision to purchase or sell as a result of the opinions expressed in this report will be the full responsibility of the person authorizing such transaction.