You
don’t have to be a grizzled value investor to agree with Warren
Buffet’s two key rules of investing: “Rule No.1: Never lose money. Rule
No.2: Never forget rule No.1.” Since we opened our first trade for
March expiration, the S&P 500 index is down almost 100 points -
that’s a loss of over 6.6% in a little over one month, and the index is now off 12% from it’s January open.
Continued weakness in the U.S. dollar means that the Euro zone now surpasses the United States as the world’s largest economy. Bear Stearns
investors were baffled by what simply had to be an entire day’s worth
of bad ticks on Friday. In this environment, playing good defense is as
important as ever, and in light of the above, it should be sufficient
for us to report, happily, that we didn’t lose money over the March
expiration cycle. (In fact, our March trades averaged 8% return on capital risked.) But enough about us, let’s talk about the market.
To read the rest of this post, just click on over to our iron condor trading blog...