OPTIONSMART MORNING UPDATE: Boosted by housing and autos

June 3rd, 2009 at 8:25 am

OPTIONSMART MORNING UPDATE: Boosted by housing and autos

1. OUTLOOK: The tech sector managed an advance at the end of a choppy session after a positive housing report and a series of better-than-expected auto sales reports gave investors some optimism. managing an advance at the end of a choppy session after a positive housing report and a series of not-as-bad-as-expected auto sales reports gave investors some optimism. Applied Materials stated that there will be more failures in the semiconductor equipment sector amid declining customers. Though there weren't any primary leaders, gains were still respectable and broad-based. We see more upside in the coming days.

2. KEY DRIVERS FOR TODAY:

A smaller-than-expected decline in auto sales 0.5%;
A positive housing report: pending home sales jumped 6.7%;
Tim Geithner said China has confidence in U.S. efforts to revive the economy;
An index of the U.K. services sector expanded for the first time in 13 months.

ADP's estimate of May employment, due at 8:15 a.m.
April factory orders at 9 a.m. as well as the ISM non-manufacturing gauge, due around 10 a.m.

QQQQ's implied volatility inched lower to 27.6

According to our estimates, the NASDAQ index has a 65% probability to close higher today

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HPQ Jul 32/34 Debit Call Spread: Bought @1.30 on 05/20/09 and sold @1.44 on 06/01/09 with a 10.8% gain in 12 days!

INTC Jun 14/16 Debit Call Spread: Bought @1.51 on 05/04/09 and sold @1.67 on 06/01/09 with a 10.6% gain in 28 days!

QQQQ Jul 32/34 Debit Call Spread: Bought @1.46 on 05/28/09 and sold @1.62 on 06/01/09 with a 11% gain in 4 days!

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2009 "QQQQ Enhanced Portfolio" Performance

Click on the chart to see the Track Record in pdf format

% of Winning Trades:	100%
Ave. Holding Period:	11 days
Ave. Gain per Trade:	13.6%
Annualized Return	336.4%
Actual gain in 2009 (Jan -May)	140.2%
Initial Capital as of 1/1/09	$100,000
Portfolio Value as of 06/01/09	$240,166

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OPTIONSMART MORNING UPDATE: Boosted by housing and autos