It was the most dramatic jobs report -- at least it feels that way every month. And every month we immediately react, and then a few days later we forget about everything in the report. Sure, a few folks will refer back to the report, but trading is always a forward-looking game. Looking back just results in running into a wall, so any decisions made based on today's report will mostly be moot by the end of next week. Therefore, my trades driven by today's action will have a time stop in addition to a price stop utilizing whichever hits first.
We are seeing a selloff this morning that is hitting the long SPDR S&P 500 (SPY) weekly calls; however, we are seeing the United States Oil Fund (USO) sell off at a higher clip. In the end, the equal dollar exposure with long USO weekly puts and long SPY weekly calls has played out well. The total entry of four USO puts to one SPY call for an equal dollar-exposure cost about $7 on entry and can be sold for $9.25 now. Given that I don't see much more upside in the trade today and an afternoon reversal in USO could eat away all the profits, I would look to exit or adjust this position immediately....197 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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