Options Trader: Friday Outlook

Phil Davis submits: Wow, what happened yesterday? I was off for the day and that sure was one rotten close on the Dow!   Not entirely unexpected, though, as not only did we play the SKFs Sept $125s in the morning post for a nice 35% gain (which should be taken off the table or covered, of course) but my last comment to members in Wednesday’s post was: "Let’s not forget the old Wednesday is the highest day of the week rule.  The last time that wasn’t true was way back on June 18th although it was very spotty in the downtrend before it so maybe it’s a good thing when Wednesday is hump day… Let’s not fool ourselves, Thursday Thumps lead to TGIFs that we are glad to be done with and it’s crunch time in the Hamptons with just 3 weekends to go before the holiday so you’ll be hard pressed to keep traders on the floor after lunch on Friday.  Today was a great technical day with our best close of the day since Wed, June 25th, that was followed by a 350-point Thursday Thump on June 26th.  Sadly, I will remind you that that was the day after the Fed had not hiked rates and I wasn’t happy about it then either!"Complete Story »