Again today the market was bullish, led once more by the tech stocks. NDX almost closed up 1% again. The RUT and the SPX were up about half a percent each. Monthly options expired today, so we have two sets of bull puts on the NDX expiring worthless on tomorrow's open.
The VIX fell, SKEW was flat, and the Put/Call ratios are falling. Everything is bullish, except the SPX chart has not yet made a new high. Its previous high is about 7 points from where it stands now, so we may get the new high tomorrow.
I had to roll our NDX 4810/4820 expiring today to Nov23 for $2.40 credit. Most likely the market will pullback at the beginning of next.
Also, I add to our small bear call on the RUT by adding one further out of the money. Now we have the original one expiring on Nov30 at 1310/1320 and another I added today at 1335/1345 expiring Dec02 for $2,65. The RUT is up now 10 days in a row, any slow down will be welcome and will drop the price of these options.
Finally, we have an SPX bull call spread at 2180/2190 that we purchased for $3.60 a while back. It's worth almost $6.00 now. It expires on Nov21, so I put a 2200/2210 bear call spread expiring Nov23 on for $1.35 to give a little more premium to the trade if the market stalls out at these levels.
All in all, the market grinds higher. With one directional moves like we have seen since the Trump election, its hard to find moments to trade both sides of the market. I expect the extreme bullish move to be finished this week, and more two-way action to start soon.
