How to use options to trade stocks around an -2-

Long 1 expiring SPY SPY (Aug. 7) $757 call and short 1 SPY (Aug. 7) $777 call: The position will be held until new lows outnumber new highs on the NYSE for two consecutive days. Sell this spread and roll to the following: buy 1 SPY (Aug. 28) $772 call and sell 1 SPY (Aug. 28) $797 call.

Long 1 expiring SPY (Aug. 7) $757 call and short 1 SPY (Aug. 7) $777 call: This is the trend of VIX buy signal. Stop yourself out if VIX closes above 19 for two days in a row. Sell this spread and roll to the following: buy 1 SPY (Aug. 28) $772 call and sell 1 SPY (Aug. 28) $797 call.

Long 1 VRNS (VRNS) (Aug. 21) $45 call: Continue to hold without a stop, as the takeover rumors persist for VRNS.

Buy 2 ALLE (ALLE) (Aug. 21) $160 calls: We will hold these calls as long as the weighted put-call ratio for ALLE remains on a buy signal. ALLE traded at 160, so these calls were rolled up again.

Long 2 UVIX UVIX (Aug. 21) 95 calls: Hold without a stop for now.

Long 1 JKHY (JKHY) (Aug. 21) $155 call: As usual, we will hold this call as long as the weighted put-call ratio for JKHY remains on a buy signal. These calls were rolled up when JKHY traded at $155.

Long 6 KEY (KEY) (Sep. 18) $23 puts: We will hold these as long as the weighted put-call ratio for KEY remains on a sell signal.

Long 10 VIX (Aug. 19) 26 calls: We are holding this seasonal trade without a stop at this time.

Send questions to: lmcmillan@optionstrategist.com.

Lawrence G. McMillan is president of McMillan Analysis, a registered investment and commodity trading adviser. McMillan may hold positions in securities recommended in this report, both personally and in client accounts. He is an experienced trader and money manager and is the author of "Options as a Strategic Investment." www.optionstrategist.com

(c)McMillan Analysis Corporation is registered with the SEC as an investment adviser and with the CFTC as a commodity trading adviser. The information in this newsletter has been carefully compiled from sources believed to be reliable, but accuracy and completeness are not guaranteed. The officers or directors of McMillan Analysis Corporation, or accounts managed by such persons may have positions in the securities recommended in the advisory.

-Lawrence G. McMillan

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08-06-26 1637ET