As hoped, Exxon Mobil (XOM) pulled back beautifully from overhead resistance, and on news that Warren Buffett sold his stake. I’m now recommending that you sell to close the second half of the XOM April 90 put trade, as the underlying stock nears prior support at $86.
I have no interest in giving back these gains.
Also, I’m recommending that you exit the second half of the WMT March 82.50 put. While the stock pulled back nicely, it wasn’t enough to secure gains on the second half of the trade.
As for new trade ideas, the housing bulls just don’t learn.
KB Home (KBH) is again massively overbought. Unfortunately for the bulls, all technical indicators – MACD, RSI and MFI – are pointing to likely downside again. Consider buying to open the KBH July 2015 14 put up to $1.75.
We will talk again soon. If you have any comments or questions, please let me know and I’’ be happy to help the best I can.
Ian L. Cooper
Inside Value Trader