Option Expiration Friday – July Portfolio Profits Again

To follow on the whole mantra of “big bank earnings” this week we had another strong beat of estimates by GE this morning. While of course this is encouraging, let me tell you why they beat so big. You see when analysts at these big banks last year saw everything collapsing, they cut their estimates dramatically – sometimes in half or more. Now that we have seen a pick up in the markets, their same estimates are looking like a huge beat, when in reality their estimates were so low that really anyone could beat it. You have to understand here people that when they have these huge “earnings beat our estimates” times like these, they attract hundreds of customers with the headlines. Now, I’m not saying that every single analyst is doing this by all means, but many more than you think. So take this with a grain of salt and move on.

This morning the futures were fairly flat and honestly should be considering the four day monstrosity we had of a rally – everyone needs time to catch up. As you all can see, option expiration week is always interesting and exciting – at least for some. Our July expiration options are ALL going to expire worthless and profitable once again this month. Even in the face of huge market swings, we still made all the money we set out to make at the beginning of the month.