August 22, 2017

Another Successful Options Cycle – Short Iron Condor

Today’s range bound trading was typical for an option expiration. Most people associate option expiration with a widely vacillating environment and historically that can’t be further from the truth. The best thing about today is that it maintained our current short-term view on the market.

The trading day following President’s Day is overwhelmingly negative with roughly 30% of the days being positive. Moreover, the VIX is back down to 10 which in the recent past has triggered a quick sell-off. Also, don’t forget the seasonal weakness that typically occurs the day following options expiration. Combine the aforementioned conditions and I think a short-term play could be on my agenda for Tuesday.

SPX settled at roughly the 1452 area early at the open this morning. This makes our third straight month of gains that exceed 10%. Since we initiated the portfolio in our newsletter three option cycles ago we have made 12.2%, 14.8% and 17.6% per cycle. Not bad. We are ecstatic with the results and are extremely excited to open the strategy up for autotrade. We will place another trade in this strategy on Tuesday which gives you one more month to follow and learn the intricacies of this strategy before it goes live. We talk about it in great detail in our White Paper and on the insider’s page of our website.

and we will do our best to save you a spot once we make the portfolio live, which will occur after the March expiration cycle.

Overbought/Oversold levels for February 16, 2007

  • SPY – 69.1 (neutral)
  • DIA – 69.3 (neutral)
  • IWM – 72.9 (overbought)
  • QQQQ – 66.1 (neutral)
  • OIH – 35.2 (neutral)
  • GLD – 72.6 (overbought)

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Have a great night!