By Lawrence G. McMillan
The second issue in May (Volume 22, No. 10) is being published on the fifth Thursday – May 30th. This is because, on the regular 4th Thursday publication date, I was in Chicago to participate in the Barron’s Roundtable celebrating the 40th anniversary of the CBOE. The entire hour and a half panel discussion is available at CBOE TV. The videos are segmented into Part 1, Part 2 and Part 3.
The feature article discusses the use of collars at the current time to hedge some of the fastest-rising stocks: the high dividend payers that investors have been chasing with abandon. There is a “trick” when looking at such stocks (reducing the stock price by the present worth of the dividend stream) that makes them seem more logical.
Our market indicators are discussed on page 5. The indicators are turning bearish, but $SPX has not fallen below any support levels. Even so, we recommend beginning to buy SPY puts now and adding to them if support levels are broken.
On page 6 is an article about the huge distance that $SPX is above its 200-day moving average. We update the data and add some new twists.
On page 7, there is an article about the daily signals emanating from the Total put-call ratio. Also, we note where to find this data daily.
Option trading recommendations in SPY, GOOG, CMCSA, INTC, KMB, GLD, ROC, and BBRY are located on pages 7, 8, and 9.
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