Wednesday, July 18, 2012

IWM Follow Up

Last week I started a short term position in SPY July Calls and a longer term Aug IWM Calls, I closed the SPY calls at a profit last week and decided to wait on the longer strike IWM calls, but I see no good reason to hod them right now and it looks like a decent area to close the position at a profit.

 
A 19+% profit.

 IWM 1 min with what looks like a parabolic move this morning.

 3 min negative divergence on price strength.

 5 min relative negative divergences

 And a 15 min negative divergence. It looks like probabilities are against the IWM calls at this point, I see no reason to continue holding them, I'll be looking for a new August call position at better prices so long as the charts move that way in to a pullback.

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