There will be no vote on the Boehner debt plan tonight, according to House Republican Whip McCarthy. Votes need is over 200+.

08:14 AM Q2 GDP figures are due out shortly, with economists estimating growth decelerated to 1.8% from 1.9% in Q1. A main reason for the softening is weak consumer spending, which accounts for about 70% of the economy, while corporate investment was probably a driver of growth.

04:36 AM Despite a revenue base that dwarfs Apple's (AAPL) ($2.16T vs. $63.5B for FY'10), the U.S. government currently has less cash on hand than the world's largest tech firm. The Treasury said yesterday its "Total Operating Balance" is $73.8B; Apple's current cash reserves are $75.9B, as of its recent quarterly report.

GS was on the way it to 140 level, but as you can see on the chart. This chart stalled on the 139.25 level.

NFLX has been brought down to the 4/25/2011 and 6/21/2011 level on this daily chart. Earnings where slightly off and the stock dropped 31 and change in after hours trading. Sub are cancelling, due to price increase and will have to see if we have buyers come in a purchase this thing back up.

• Monday 4:26 PM More on Netflix's (NFLX) Q2: U.S. subscribers expected to rise only slightly in Q3, to 25M. 10M streaming-only, 3M DVD-only, and 12M both streaming and DVDs. Q3 revenue expected to be $780M-$805M, below $847M consensus. 16.3% operating margin in Q2, but company maintaining 14% target for 2011, due to higher streaming-related expenses. NFLX -8.7% AH. (PDF)
  Comment!
  [Tech, Earnings, On the Move]
• Monday 4:14 PM Netflix (NFLX): Q2 EPS of $1.26 beats by $0.15. Revenue of $788.6M (+52% Y/Y) misses by $2.9M. 25.6M total subscribers (24.6M in U.S.) in line with guidance for 24.9M-25.8M. Guides for Q3 EPS of $0.72-$1.07, below $1.09 consensus. Shares -7.7% AH. (PDF)
  5 Comments
  [Tech, Earnings, On the Move]

http://files.shareholder.com/downloads/NFLX/1335372741x0x485532/067c1c07-f779-40f8-a1fb-20096eeb9bbc/July%20Investor%20Letter%201130am.pdf

The USD is getting hammer this morning with that said, US Market should get a boost to the upside, with all that has been going on with the Debt Talks and European Talks, Retail Traders need to keep their eyes on the prize.

Position Size and Risk Management. Rule number 1: Don't Lose Money. Rule Number 2: Don't Forget Rule number 1.

EcoNews: New Housing Numbers at 10:00 a.m. ET.. Pretty light as far as EcoNews until the Debt Ceiling is done.

This is a controlled market....

GS in the process of making a run to the 137.00; we have just moved through the mid range of 7/05/2011. Looking for more conviction in the stock. Will have to see where it belongs, in the coming days. Also, it has cleared the 50 MA line on the day chart.

Disclaimer: We currently hold GS.

Simple math:

10 contracts at .35 equals $350, cash out 10 contracts at 3.00 = $3K

Traders math:

100 contracts at .35 equals $3,500, cash out 100 contracts at 3.00 = $30,000

100 contracts at .35 equals $3.5K, cash out 100 contracts at 5.00 = $50,000

You would need to minus your brokerage firm commission...All in a days work if you were on the right side of the trade.

GS had pretty good day 20 cents up and down on the options. 130 AUG Call or Put. Best trades today were the Tech hands down and GOOG .10 to over 5 in the 615 Weekly Calls. That have expired today.

Overall, trading was all of over the aboard with NFLX, selection of the incorrect strike price, but small gain is not a problem.

This was an interesting day for this stock, as it made a new two day high. Will see how this stock reacts to Ben and the Job numbers in the morning.

GS is currently in a 2-day consolidation mode with earnings announcement this a.m. ET. By far the largest culprit behind Goldman's (GS -0.5%) lackluster Q2 results is the decline in the company's trading operations, with its revenues plunging 47% from Q1. Accompanying this decline is a diminished risk appetite, with the firm's "value at risk" on a given day falling to $101M, its lowest level since Q3 2006.

Based on this 5 min chart the stock gap below the 2 day low and then was able to rally back above it to make a second dip, but still is clear that the stock wants to be higher than what its currently at. Moreover, the company stock is in a decline role.

AA (Closed at $16.38) announces earnings Monday (Market Expects .33) and as of Friday
A 16 AUG 11 straddle cost $ 1.49.
A 17C/16P AUG 11 strangle cost $1.01

This company will probably not move that much as last earnings was a gap of 1.2%, the strangle maybe the ticket. As we are looking for a 1.01 move to the either direction of this underlying stock. Will have to see....

Strangle and Straddle Updated

As you can see we are still profitable in the AAPL Strangle and Straddle trade.

Strangle
AAPL 345 AUG 11 C 21.70
AAPL 340 AUG 11 P 5.40

Straddle
AAPL 340 AUG 11 C 25.35
AAPL 340 AUG 11 P 5.40

Would like to see where this trade take us before earnings are released, in a couple of weeks.

Thursday, July 7, 6:06 PM Research firm Nanex believes high-frequency traders are placing orders at a rate of 1M orders/second. The orders are typically cancelled right away, with the goal of slowing down the prices seen by others and profiting from access to near-real-time quote data. "Program trading" is estimated to now account for 70% of daily market volume.

AAPL Alerted At: $343.26 as of 07/1/11 – AAPL Q3 2011 EPS ESTIMATE 5.69 – Date 19-Jul-11

Strangle would possible work here, take a look at Friday's Options

Buy To Open 1 AAPL 345 JUL 11 Call Monthly at 10.55 - Delta .50 - stock has to rise above $356.40 by Aug 20.

Buy To Open 1 AAPL 340 JUL 11 Put Monthly at 11.40 - Delta .44 - stock has to fall below $329.50 by Aug 20.

A debit of 21.95 ($2195) would have been invested, commission have been excluded. This is 100% premium risk.

Straddle would possible work here, take a look at Friday's Options

Buy To Open 1 AAPL 340 JUL 11 Call Monthly at 14.10 - Delta .56 - stock has to rise above $354.10 by Aug 20.

Buy To Open 1 AAPL 340 JUL 11 Put Monthly at 10.40 - Delta .44 - stock has to fall below $329.60 by Aug 20.

A debit of 24.52 ($2452) would have been invested, commission have been excluded. This is 100% premium risk.

Now, how could this trade have gone wrong? Well, if AAPL had moved just by a few point(s), let's say 5 point(s) either up or down, if the stock stays within a range, or you get a small to no movement before expiration, then probably the winner option wouldn't have gained enough value to offset the loss of the loser option. You're out of luck!! Moreover, one thing after the earnings, once AAPL move is defined to the up or down side you can get rid of the loser option quickly in order to avoid losing more money on it. So when you play either the Straddle or Strangle you are betting on a huge move, it doesn't matter if it is up or down, you just need the stock to move abruptly, to cover your debit (invested) to make the position profitable, the more the better.

New levels to watch out for this week, a shorten week. Due to the 4th US Holiday.