Wow! Today was just what I was looking for! The markets have been building up a head of steam and are really looking like they have a positive bias. After a week of solid gains, and 5 year highs across multiple indexes, my 30 point cushions were starting to look a little soft. While I’m still very confident that each of my positions this month are in good shape, it’s always a good idea to keep and eye on the market!

Today was a nice bit of relief. The big head of steam let quite a bit out! A 10 point drop in both the S&P 500 and Russell 2000 indexes makes for a nicer cushion on the top. Ideally, there will be a soft bounce during this coming week and the markets will begin their chop/trend upwards.

I do have another position on in the S&P 500 in an IRA account, this position is only the bull put spread of a condor, and it’s also looking quite nice.

I think the market has established a pretty solid upward trend, and we will continue to see solid movement to the upside; unless the fed goes nuts with rates! On a macro level our economy looks pretty good, and most of the commentary I have read seems to agree.

During a period like this, it is important to remember that you don’t have to put on both sides of a condor. There are many other types of trades you can do. You can simply sell one side, the bull put, or bear call spread. You can play calendar spreads, strangles, straddles and a lot of other great strategies!

As for me, I’ll likely continue with condors, I like them and feel confident in the large cushions I secure on each side. However, each trade requires it’s own analysis – be diligent, the devil is in the details!

Categories: Options Trading