Resistance at the all time high is stiff on Thursday and the upside is fairly limited, so option trader Pete Stolcers, of OneOption.com, suggests that option traders stay long, but he also suggests they start taking profits on call positions.

Posted 8:30 AM ET Thursday—The market tried to rally Wednesday, but comments from Janet Yellen sparked some light selling. She said that baring any surprises, the Fed would raise rates at least once this year. The 100-Day MA was never in jeopardy and we will stay above it this week.

I know that Greek riots were blamed for the pullback Wednesday, but any logical person should have expected that after the concessions were made. Either way (deal or no deal) there would have been rioting.

Chinas trade balance improved and GDP/retail sales were better than expected. Their market sold off Wednesday and it is bouncing back Thursday. For the next week, the price action should stabilize.

With China and Greece behind us temporarily, the market will focus on earnings. They will be good, but not great. Mega-cap tech stocks will need to lead the next leg of this rally. Google posts after the close Thursday.

The economic news is light next week. Flash PMIs will be posted a week from Friday and that is the next big release.

If you are long calls, take some profits. I predicted three-to-four days of positive price action and we got it. The market momentum will slow and that makes it more difficult to own calls. Selling out-of-the-money put spreads is still the way to go. Wait for a strong earnings announcement and a horizontal breakout. Then sell OTM put spreads below the breakout. Use the breakout as your stop.

Resistance at the all time high is stiff so the upside is fairly limited at this stage.

AAPL reports next Tuesday and that will keep buyers engaged.

Stay long, but start taking profits on call positions.

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By Pete Stolcers of OneOption.com