By Lawrence G. McMillan
Note that there are three weeks between newsletters, since there are five Thursdays in October. The next issue will be published on Thursday, November 12th, and of course there will be Hotline updates for the intervening weeks.
The feature article expands on a topic that was first addressed in the last issue: possibly selling naked straddles in advance of earnings. In this article, we present the results of a study that we conducted, and indeed there are criteria that can be applied to find occasional straddle sales.
Our market opinion is on page 6. The indicators remain bullish, and so our intermediate-term outlook remains bullish as well.
On page 7, we discuss whether the October Seasonal trade will be made this year; it appears that it won’t.
Also on page 7, there is an arbitrage-style recommendation in EMC that has good profit potential.
There are two put ratio spreads on page 7 as well.
On page 9, there is a speculative trad in T-Bond ETF options, based on a DSI signal.
Finally, an earnings-driven straddle trade in EXPE is presented on page 9.■
Read all the articles and get the complete trading recommendations by subscribing to The Option Strategist now.
© 2023 The Option Strategist | McMillan Analysis Corporation