Did you catch CNBC Options Action Last Friday? Mike Khouw and Carter Worth identified the IWM – Russell 2000 as the catch up trade. The SP 500 is hitting some resistence and the Russell is still looking to make some gaines. Action must be taken on Monday, so here it is.
- Carter Worth – Pairs trade, Long IWM / Short SPY – this got @riskreversal s attention.
- Mike Khouw – Long the June 157 Calls.
- Dan Nathon – WFC put spreads in May.
The Options Edge uses OptionsPlay and We’ve structured this trade so you can analyze and view this trade along with the supporting technical chart. You can also view the Options Action’s video by clicking on the following link: IWM Options Action Video.
Things to look out for this week.
- Look at XLE companies for a long trade as we continiue into this Profit Recession.
- I don’t think investor consensus has sufficiently discounted the increasingly acute risk to corporate profits in the US.
- Brazil looks to be rolloing over. may be time to sell some call spreads.
Happy Monday. Good Luck out there this week.
Global Spotlight
Taiwan Provocations in Play. We’ll be watching the 40th anniversary of the Taiwan Relations Act on April 10 to see whether the Trump administration decides to use the symbolic occasion to dispatch a Cabinet-level official to Taipei.
U.S. Pushback in the South China Sea. We’re starting to see more meaningful U.S. moves to deter China’s military expansion in the South China Sea. The United States is reportedly in discussions with the Philippines to deploy High Mobility Artillery Rocket Systems in the South China Sea and with Vietnam to regularize aircraft carrier visits to Vietnamese ports.
The Elusive U.S.-China Deal. China and the United States so far have been able to prevent rising military frictions from bleeding into their trade talks. We’re still watching for an actual date to be set for Chinese President Xi Jinping and U.S. President Donald Trump to meet and sign a deal, but this past week offered clues on how both sides intend to get around the enforcement dilemma.
Turkey’s Wake-Up Call. Turkey’s main secular opposition party is prying control away from the ruling Justice and Development Party (AKP) after eking out wins in tight mayoral races in Turkey’s largest cities, including Istanbul and Ankara.
Brexit Watch. With the April 12 Brexit deadline nearing, British Prime Minister Theresa May is in talks with Labour opposition leaders on a softer Brexit while also trying to calm enraged hard-liners in her own Conservative Party by requesting a short Brexit delay until June 30.
Israel Goes to the Polls. Israel’s April 9 national elections will pit long-term Prime Minister Benjamin Netanyahu and his Likud party against the challenge of former military chief Benny Gantz’s Blue and White Party.
Eyes on Washington’s Man in Caracas. Venezuela’s government is laying the groundwork to arrest key opposition figure Juan Guaido. The Supreme Court on April 1 asked the country’s ruling junta to strip Guaido of his parliamentary immunity.
Stratfor.com
Economic Calendar
Briefing.com has a good U.S. economic calendar for the week. Here are the main U.S. releases.
Briefing.com
Last Weeks Numbers
Review Last weeks numbers here.
Earnings
Thomson Reuters I/B/E/S
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