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Let’s do a quick update before market opens.

In the last post, I mentioned "the Jan 28 and Feb 9 double-top forms the next resistance in the 870 area". Yesterday’s big drop shows that the overbought market has decided to that a breather (more like a big sigh!).

Our positions are looking a lot better after that drop. Going into last weekend, the delta of the bear call (940/965) closed at 18 and the spread price was marked at 3.30. While it did not trigger our adjustment, I was already looking for adjustment candidates on Sunday evening. The drop has brought delta to a safe 7 and price of the spread to 1.20. Recall we sold our 940/965 at $2.00 per spread (see post).

The Bull Put Spreads are also looking good. The 655/630 BPS are currently marked at 0.35. Recall we sold each spread at $1.90.

Next update will hopefully see both sides closed.

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The long weekend gave us some breather - both for our positions and for ourselves. This isn’t exactly the best time to be trading iron condors. It was stressful, but I always emphasize that if done correctly, iron condors can have very minimal losses.

The drop this month made us do a costly adjustment, which thankfully was nullified with more credits from the opening of 3 more spreads (see post). Last week also saw us opening our August position. We managed to open the Bear Call Spread at 1400/1425 (sold SPX August 1400 Call, bought SPX August 1425 Call) for a credit of $1.70. We did not manage to fill the Bull Put Spread which we were asking for $2.00. Maybe today.

Futures point to a positive opening, but only barely. A bounce is due and I will not be surprised if we get a 200 point gain on the Dow. Let’s see what Mr Market feels today…

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