Each month during expiration week, the Covered Calls Advisor re-calculates the current values for the nine factors used to determine the "Overall Market Meter" rating. Some of the individual factors have changed from last month but, as shown in the chart below, the new Market Meter Average rating (blue bar at the bottom of the chart) remains unchanged at "Slightly Bullish":
As shown in the right sidebar, the covered calls investing strategy corresponding to this Slightly Bullish sentiment is to "on-average sell 2% Out-of-the-Money Covered Calls for the nearest expiration month." So as Jan2010 options expire this week, new positions for Feb2010 expiration will be established in accordance with this guideline.
This advisor admits to having hoped that the Overall Market Meter rating would have changed this month -- but the Slightly Bullish overall rating persists. Now I can count on continuing to hear my wife and daughters' oft-repeated (but fortunately good-natured) kidding regarding my Overall Market Meter:
"He's Still Slightly Bullish!"
For a more detailed explanation of each of the Covered Calls Advisor's nine indicators, please refer to this prior blog post on that topic -- link.
Your comments and questions regarding this post are welcomed. Please click on the "comments" link below or email me at the address shown in the upper-right sidebar.
Regards and Godspeed,