The markets bounced back fiercely today as the Dow closed with a gain of 547 points and the S&P500 with 59 points. The NASDAQ and Russell2000 were the leaders as they both tacked on nearly 3% with point gains of 214 and 43, respectively. The VIX deflated to close below 18 when it was more than 28 just a few sessions ago.
We sold the put leg of our second straddle this morning for an average of $2.12. We felt that the selling pressure had subsided and turned the neutral position into a bullish one. We still hold the call leg and plan to ride it up.
As strong as today's session was, tech will need to lead the charge higher to put last week's selloff in the rear view mirror. Just after the bell, Netflix reported earnings and they smashed expectations! Earnings per share, revenue and new subscriptions were much higher than Wall Street forecasted. This should solidify today's market gains and be a catalyst for more this week.
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