April 2008 - Posts

• Hedging Ideas for Iron Condors, Part 1

  Saturday, April 26, 2008 6:08 PM

  What should you do when the underlying moves against an iron condor position you have open?  (For example, if you’re a member, you may have noticed that one of our DIA trades for May expiration is looking threatened by the recent price action in the index Read More Posted by CondorOption 0 Comments Go to top

• Is the VIX Impervious to Technical Analysis?

  Monday, April 14, 2008 2:01 PM

  Yes, yes it is. The psychologist Abraham Maslow famously said, “When the only tool you have is a hammer, everything looks like a nail.” It has become increasingly common to see financial journalists and bloggers refer to the VIX as an indicator of market sentiment and sometimes of market direction, and those authors inclined toward technical analysis even apply their tools to draw predictive conclusions Read More Posted by CondorOption 0 Comments Go to top

• Bonus Trades: Long Financials, Short Energy

  Friday, April 11, 2008 5:22 AM

  These are very short term overbought/oversold technical plays only. Energy (XLE) Thesis : The Energy ETF is well overbought on a short-term basis - practically maxed out at 99.98, and the implied volatility relative to its historical volatility over the past 21 sessions is also giving a sell signal Read More Posted by CondorOption 0 Comments Go to top

• Participate in the Rally with a Broken Call Condor

  Friday, April 11, 2008 5:21 AM

  Does this describe you? You’d like to participate in any nice rally that comes our way over the next month; You’d like to avoid any and all downside risk in case the rally never comes and indexes stay flat or plunge; You’d like to get paid just for hanging around and waiting to see what happens Read More Posted by CondorOption 0 Comments Go to top

• Feed Your Hedge

  Friday, April 11, 2008 5:20 AM

  Traders are behaving cautiously today, to say the least, as they suffer through the post-Alcoa, poor-home-sales hangover ahead of the Federal Reserve’s release of the minutes from the FOMC’s March 18 policy meeting. Yet implied volatility, in VIX terms, is up less than 2 percent Read More Posted by CondorOption 0 Comments Go to top

• 6 Rules for Getting Your Trades Filled

  Friday, April 11, 2008 5:17 AM

  Sometimes, you’re making a completely reasonable request, and Mr. Market decides to be an obstinate jerk.  Yesterday afternoon was a great example of this: we were routing some ordinary, run-of-the-mill spreads, and trades that normally should have been filled right away at the mid price (halfway between the bid and the ask) just sat there, even after a morning of easy trading Read More Posted by CondorOption 0 Comments Go to top

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