Options Expiration Week

This week is options expiration. So, it is likely there could be some manipulation in the markets. Instead of selling off, the markets might hang up until after this week. That would be typical Wall Street action. I am still thinking that prices could head lower in the coming weeks. According to some research I have come across, 2007 could be the last year of this bull run. The next decade could present a significant downside sell-off that rivals the major breakdowns of the last 100 years. Of course, the majority will not want to believe that their precious upside bull market is about to crumble. No prisoners will be taken if this prediction turns out to be even half true.

I entered a new position this morning. I purchased a put option on Fluor Corp. (FLR) for $10.90 ($1,090). The option is the July 115 put, symbol FLRSC. Fluor was trading at $104.40 when the put was bought. The stop loss target will be $106 or there abouts. The all-time trading high is $106.60, reached just a week ago. Since that high, FLR sold off to $99 before the current snap back. I am thinking it will be range bound at best and fall lower if we can get some downside action. For now, the $99-100 area will be the initial profit target, depending on the market action if it gets back down to those prices.