1:50pm (EST) The market has held up rather well despite the nervous open we got. After starting the session with a 75 point drop, the Dow has now turned positive as we head into the 2nd half of today’s trading. The S&P 500 is down slightly but the Nasdaq is getting hit for a 20 point loss and is down 1% to 1,776. I mentioned the selloff in Alcoa (AA, $9.20, down $0.66) last Thursday and today is no different as the stock is down another 7%. The July 10 puts (AASB, $1.00, up $0.38) WOULD have been a super play from last week as they are up nearly 70% following today’s plunge in Alcoa. I’m not sure how much room is left in that trade but one analyst came out this morning with a huge earning loss estimate, even worse than the one I gave you in the Weekly Wrap. We were stopped out of the other Imax (IMAX, $7.56, down $0.55) trades this morning as the break below $8 was not great. I have been mentioning these stops over and over and this trade is now over. I was hoping we could ride the later months call options for further gains but we can blame Barron’s for this one. Be careful with the Alcoa trade. I would not enter the July 10’s for more than $1.05 and would look to get out of the trade BEFORE earnings with a tight stop already in place at 80 cents. I’ll be back tonight with another update. Rick@MomentumOptionsTrading.com]]>