Near-term markets outlook and locking in profits on one trade

Howdy folks. It’s another range-bound into year-end day at the markets and that’s okay with us.

As I’d hinted yesterday though, I do think we’re likely to finally see these markets break their trading range in coming weeks.  There will be year-end window-dressing by both shorts but mostly by the longs and there will be serious portfolio changes and moves made by most money managers at the start of next year, though trying to game what those moves mean and how to navigate them will depend upon earnings trends, end-user demand and the price action of the stocks — we won’t know how to trade it til we see the timing and the pricing of how it all plays out in coming weeks. Stay tuned, as we’ll likely pick up the pace of trading ourselves depending on the pitches that the markets throw.

For today, I’m starting to buy back those Apple puts that I’d shorted.  I’d gotten almost $20 each and those puts are now trading at under $3, so I’m locking in some 80% plus gains in under a month on these puppies. I’ll look to short more Apple puts on weakness and I still own my Apple common stock.

And don’t forget today’s Q&A at 2pm EST at http://tradingwithcody.com/chat.