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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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