I think most market observers and participants would agree that the lower interest environment has been a big contributor (if not the biggest) to the stock market boom.  Since 2009 the equity index markets have been giving what many investors view as the best return on investment. Even with the end of QE, and rampant rate hike speculation, the S&P 500 has continued to move higher.

Since the beginning of 2015, the S&P 500 has made several visits above 2100. However the index has only one trip above the 2115 level. Recent job numbers seem to take a June rate hike off the table, and give the idea that rates will remain ultra low for at least this quarter. This gives the market a bit of help staying near 2100. As we head into summer I think this may change a bit.

I like being a premium seller with defined risk. I like selling the June E-Mini S&P 500 2130-2150 call spread at 10 points ($500.00) or better.  Since we are collecting 10 points our breakeven level will be with the June E-Mini S&P at 2140, at expiration on 6/19/15.  The maximum risk is defined to 10 points ($500.00) plus fees and commissions. I am looking to ride this spread out until expiration and keep the entire premium.

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For those interested Walsh Trading is holding our weekly grain webinar Thursday May 14th at 3 PM Central time hosted by our Senior Grain analyst Tim Hannagan. Tim has been ranked #1 by Reuters and Bloomberg in 2011 and 2012 for his most accurate end of year price predictions for soybeans and corn. Registration is free and if you cannot attend live, a recording will be sent to your email upon signup.

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RISK DISCLOSURE: THERE IS A SUBSTANTIAL RISK OF LOSS IN FUTURES AND OPTIONS TRADING.  THIS REPORT IS A SOLICITATION FOR ENTERING A DERIVATIVES TRANSACTION AND ALL TRANSACTIONS INCLUDE A SUBSTANTIAL RISK OF LOSS. THE USE OF A STOP-LOSS ORDER MAY NOT NECESSARILY LIMIT YOUR LOSS TO THE INTENDED AMOUNT.  WHILE CURRENT EVENTS, MARKET ANNOUNCEMENTS AND SEASONAL FACTORS ARE TYPICALLY BUILT INTO FUTURES PRICES, A MOVEMENT IN THE CASH MARKET WOULD NOT NECESSARILY MOVE IN TANDEM WITH THE RELATED FUTURES AND OPTIONS CONTRACTS.