SPDR S&P 500 ETF (SPY)

As options approach their expiry they lose their time value, but are not incredibly volatile.

As a global investor he has been moving away from the US in the last few quarters. The US will be travelling a different monetary passage than other Central Banks. Also, looking at where we were 7 years ago we had a hugely undervalued US$. The US has dramatically outperformed a lot of other stock markets, and during that period it became really expensive. He feels the US is somewhat overvalued relative to other stock markets, which is going to be a headwind. Also, valuations are just not as good as other countries.

Broad US market, S&P 500 index. It has $200 Billion in assets. It is the largest ETF of them all. A lot of people have domestic and foreign ETFs, but no US ETFs. This represents the whole US market. Long term he is very bullish on the US. It trades in US$.

Short by using HBP S&P 500 VIX ST Future Bull+ (HVU-T)? Part of what we have seen in this move has been a bit of a Short squeeze that is going on. The Fed is going to be talking on June 15-16, so there is going to be a bit of a bid until after that. You could start to take some Short positions but he wouldn’t go totally short. There is a bit of overhead resistance. Wait until we get closer to the June meeting.

(A Top Pick Aug 18/15. 0.00% Return.) He bought the stock a little higher than what it is today, but sold an option which reduced his costs down to $208.52. He also collected dividends on this, which has not been included.

(Covered Calls. He is playing the last half of the year by taking some option premiums in with he expects that these 3 Top Picks will hold their own or rise. Yield on the total return is pretty attractive. Thinks we could be in a flat market until the end of the year.) The largest ETF in the US. Very liquid and very cheap to own. Trading at around $210 a share and he is selling a January $220 Call Option. Selling this will give you roughly $2 and you get $2 in dividends between now and January. If the stock is called away your return is better than 6.5%. If it stays the same you make just under 2%.

(A Top Pick April 14/15. Up 0.79%.) On average, the US and most global markets peak on May 5, so the whole idea is that you want to own this until May 5. He got out on that date, but it turned out to be a little bit early.

Technicals are positive. The S&P 500 is in an upward trend. Trading above its 20 day moving average. This is the market, so it is doing what the market does. Seasonality continues to be positive until, on average, May 5. There is a danger that the markets could come under pressure some time between May and October of this year. A very short term trade.

Expecting a bit of weakness this summer and we are seeing stretched valuations. Nothing is cheap at the present so you want to avoid the broad markets. This one is trading at about a 17 multiple. Look for things with a lower multiple such as consumer staples or utilities which are hovering around 14.

There are 2 sweet spots a year for the US market, particularly for this stock. One period is from the end of October until the end of December, the Christmas buying season. The other one is from the end of February right through until the end of April, the spring buying season. We have just entered into this period right now. You would own this through until about the 1^st week in May and that is when you will take some profits.

Search messenger kit. Allows it to be done inside of Blackberry messenger.

(A Top Pick Nov 6/12. Up 20.48%.) Seasonal strength is from Oct 28, on average to May 5. Last year it did very well.

You could be a buyer here, but he would watch it like a hawk.

(A Top Pick Oct 29/12. Up 31.08%.) Bought a March 1 41 Straddle at $12.68 with a Call at $6 and a Put at $6.68.

Your opinion of the Iron Condor Option strategy? To reverse the Straddle (see Past Picks) instead of buying a Call and a Put, you sell a Call and Put. Rather than saying that the underlying security is going to breach either end of the trading range, it is probably going to stay within that trading range. To do that, you sell a Call above where the stock is trading now and you sell a Put below where the stock is trading now and that becomes your trading channel. The risk is if the stock pops or drops. If it pops through the top you have unlimited risk. An Iron Condor is where you buy another Call further up and another Put further down, which is hedging your position. If you can get the 4 trades on at a reasonable commission, fine but this can eat you alive with costs.