The following report is our daily guide to what's happening here at The Option Spread Portfolio. The report gives current positions with entry price, target exit, and stop loss. Below the position table, we have given notes about each portfolio for the day. Finally, we have given charts/stocks we are watching for the given day. At the end of the report, we report new positions throughout the day.

Market Outlook

The market will mostly be reacting to the ISM Index and Construction Spending numbers that are due out at 10AM. With today marking the beginning of a new quarter, futures are flat into the trading day. That report at 10AM should set the tone for the day. The market may be held in check by ome weak movement out of Asia today after Japanese manufacturing data came out fairly weak. Chinese data was so-so. Europe, on the other hand, is rising slightly on Monday. With the market at record highs, it is hard to believe that a lot of upside is left in the near-term. At the same time, this bull run has been sustained and very strong for quite some time. Look for the market to rally if ISM beats and drop harder if it misses. 

Current Positions

PG May18, 75/72.50 Bull Put SpreadShort25$0.2504/02/2013EEM May18, 43.50/45 Bear Call SpreadShort60$0.1904/03/2013EEM May18, 43.50/45 Bear Call SpreadShort60$0.1904/03/2013LOW May18, 40/42 Bear Call SpreadShort45$0.2004/03/2013

 

Tickers	Entry	Target Exit	Stop Loss
CVX (110/105 Bull Put Spread, Apr20)	0.70	0.05	1.00
CP (110/105 Bull Put Spread, Apr20)	0.50	0.05	0.50
ORLY (100/95 Bull Put Spread, Apr20)	0.80	0.00	0.80
TEX (30/28 Bull Put Spread, Apr20)	0.25	0.05	0.50
SPY (155/157 Bear Call Spread, Apr12)	1.10	0.50 (1/2), 0.10	1.40 (1/2), TBD
TLT (114/112 Bull Put Spread, Apr20)	0.30	0.01	0.30
STJ (43/45 Bear Call Spread, Apr20)	0.25	0.05 (1/2), 0.00	0.40 (1/2), TBD
PG (75/72.50 Bull Put Spread, May18)	0.25	0.05 (1/2), 0.00	Add at 0.40
EEM (43.50/45 Bear Call Spread, May18	0.18	0.05 (1/2), 0.00	0.28
LOW (40/42 Bear Call Spread, May18)	0.20	0.05 (1/2), 0.00	0.32 (1/2), TBD

Notes:

CP - Drop stop to 0.50.

ORLY - Limit to 0.00, stop to 0.80.

TEX - Limit to 0.05, stop to 0.50.

TLT - Limit to 0.01, stop to 0.30.

CMI - Limit to 0.05, stop to 0.70.

New Positions

Options Play: Visa (V)

Position: V, Apr12, 165/160 Bull Put Spread, 2 Positions

Portfolio: Options

Analysis: Like the looks of Visa (V) this week as the stock looks to be bull flagging currently. The stock looks like it has some definite potential moving forward this week as we believe that consumer-based information has been strong outside of employment. Consumer credit is rocketing higher, spending is solid, and we finish the week with Retail Sales. 165 is strong support area, and the company has already made a solid pullback to support last week.

Entry: 1.15 or higher.

Exit: 0.75 (1/2), 0.05 (1/2)

Stop Loss: 1.50 (1/2), TBD

Timeline: Swing Trade

Oxen Entry: Bidding 1.15