Daily Update: January Expiration Rollovers



If you are still holding January expiration puts there are only two more days before expiration. Meanwhile the market is in a precarious position being extremely overbought and in the midst of an Intermediate Term downtrend. Since all of the Sell-Pending trades from Monday are also on existing Sell Signals from Nov-Dec, this is the most logical and easiest place to begin.

Note: If you are holding February puts, no problem as there are still 30 days to expiration, so consider these March recommendations optional only. 

SPY Jan $270 Put------> SPY Mar 15th $258 Put (about $5.40) 

IWM Jan $150 Put------>IWM Mar 15th $140 Put (about $2.85) 

QQQ Jan $165 Put------> QQQ Mar 15th $158 Put (about $4.40) 

In addition, Sell Pending candidates BIDU, MSFT and SQ likewise have January puts expiring while they are also on previous Sell Signals. Like the indexes above, these three also are prime candidates for rollover into March expiration: 

BIDU ----> Mar 15th $165 Put (about $7.00) 

MSFT ----> Mar 15th  $105 Put (about $4.40)

SQ -------> Mar 15th  $65 Put (about $5.20) 

The financial markets are closed next Monday (in honor of MLK Day), so any rollovers or additions should be done before Friday's close in order to be in place before next Tuesday's market open. Alternatively, some can be put on this week, the rest next week in order to dollar cost average into the March positions. Keep in mind that MLK Day is not observed in the global markets, so how domestic markets open on Tuesday is at the mercy of what happens globally overnight Sunday and Monday. 

Analog: 2007-2008 and 2018-2019

Finally, the analog between 2007-2008 and 2018-2019, which has been spot on, is suggesting a hard turn down over the next week or two: