OptionsHouse

Options Trading News

May 1, 2013  Wed 2:45 AM CT

XLI: SEE CHART GET CHAIN FIND STRATEGIES
The economy is back in focus today, with employment, manufacturing, and monetary policy on the calendar.

Weekly mortgage applications begin the flow of events at 7 a.m. ET. The first big headline comes at 8:15 a.m. ET with ADP's private-sector payroll report. Economists expect a reading of 155,000, down from 158,000 in March. The report will likely be viewed as a bellwether for the Labor Department's crucial non-farm payrolls report Friday morning.

The Institute for Supply Management's manufacturing index follows at 10 a.m. ET and has the potential to move the market. Economists expect a reading of 51, down from 51.3 last month.

Construction spending for March will be announced at the same time but is unlikely to have a big impact on sentiment because it covers a previous time frame. Weekly changes in crude-oil inventories follow at 10:30 a.m. ET, which could affect trading in energy companies.

The Federal Reserve will announce its interest-rate decision at 2 p.m. ET, and auto makers will report monthly car and truck sales at 3 p.m. ET.

We also must correct an error in earlier stories. European purchasing managers indexes will be released Thursday morning, not today. Markets across the Atlantic are closed today in observance of May Day. Our apologies for the misstatement.
Share this article with your friends


OptionsHouse

Premium Services

Upcoming Webinar:

Using Options For Income

http://bit.ly/1nY1OKA

Jon Najarian and Adam Mesh of Options Wealth Machine discuss a detailed strategy utilizing credit spreads to generate income, and how any level of trader can use this simple trading technique.

Education & Strategy

Sweet Spot Exceptions

As discussed last week, when using the Stock Replacement Strategy to replace a stock position to trade direction, we want to use an option that has very similar characteristics to the stock. We talked about using the deep in-the-money, 80 to 85 delta option that is similar in the Greeks and has relatively little extrinsic value which tends to work against us in stock directional trading.

View more education articles »