EOT Position Update – March 18, 2015
Market Snapshot
The S&P 500 was going nowhere fast over the last few weeks.
Investors had been fretting over the potential for the Fed to hike interest rates. But Fed Chair Janet Yellen put those fears to rest today.
She essentially said exactly what investors were hoping to hear.
The Fed dropped the word ‘patient’ from their statement. But an interest rate hike in April is still unlikely. And more importantly, Fed members have cut their forecast for where they think interest rates will be at the end of the year.
At the last meeting in December, the median estimate was 1.125%… now that estimate is 0.625%.
In other words, it appears that interest rates will stay lower for longer than expected and the rate of the interest rate hikes will be much more gradual.
Not surprisingly, the S&P responded by rocketing higher after the Fed statement was released.
We’ll look to enter a new trade later this week now that the Fed uncertainty is behind us.
Let’s move onto the updates…
Position Updates
Just a quick note: Remember, we won’t update every open position every week. We try to focus on the positions that have some significant news or price movement.
WEN May 15th 2015 $11 Calls
WEN found support at the 50-day moving average. Look for the strong uptrend in this stock to continue going forward. Continue holding… Resistance is at $12.00 and $13.00. Support is at $10.20 and $9.50.
STI April 17th 2015 $41 Calls
STI has continued to churn higher over the last week. Our option soared to a peak gain of 297% today. Lock in these massive profits if you haven’t already done so.
Category: EOT Update
