Winning-Options.com

Market Situation

It doesn’t look good !

Recall we talked about the "rising wedge" (see post) ? We mentioned that chances are high that it would result in the continuation to the downside. Well, on Monday, the

pattern showed its hands by breaching the lower trend-line for the first time since mid-July (see chart). There was follow-through on Tuesday, bringing the SPX down to a low of 1263. It however closed at 1267, right at the 30 SMA. The rebound yesterday was technical in nature. A pull-back at this point towards the underside of the wedge would make a nice lower-risk set-up for a short. A close below the 30 day SMA would confirm the start of a bigger downward move.

Our September Iron Condor

Both our Bull Put Spread and Bear Call Spread are doing great.

The Call side at 1385/1410 was sold last week for a credit of 1.65. Yesterday, it closed at a marked price of 0.375. We have a GTC order to close the position at 0.20. May happen today.

The Put side at 1150/1125 was sold for a credit of $1.50 per spread. Yesterday’s closing price was 0.95. Delta has gone back down to 7. Unless we get very big moves to the downside, we don’t anticipate having to adjust this position. However, our bearish view of the market may make us close this out earlier than 0.20.

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