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Ka Ching! Ring the register folks, I have been welcomed by a visit from my best Iron Condor friend, Mr. Max Profit!Honestly, the $NDX has performed beautifully for Iron Condors the last 3-4 months, trending flatly. It is here where I become cautious because with May coming soon, it seems people start to bail from their positions in April. You don't want to be in an Iron Condor during a strong trend, like July - November last year. Better to play either a one-sided credit spread, or maybe a directional Option, rolled into a credit spread if things reverse quickly one you.At this point I would probably wait for this run-up to peak, then buy some OTM Puts for the way down. Hopefully the $VIX will have subsided making the options inexpensive. We'll have to wait and see.In the meantime, I am going to look for less-risky Iron Condors to trade.Have a great weekend!Happy Trading!
Nice try.Well Traders, the $NDX is out to get me. It's one last breath at the O.K. Corral before that gunslinger goes down. Maybe it is a Swan Song, or maybe a last gasp, but in either case, it may be "too little, too late."Another "Black Tuesday," the second in two weeks. What is it about Tuesdays and crappy markey days anyway? Well, I am down to my last two days, and a $34 point loss on a $240 point down day on the Dow and it looks like I'll be safe. Still, we must always be dilligent and monitor our trades so I won't count my cash just yet. I am still $73 points to the bottom...let's hope we end the week on a high note.Happy Trading!
Well Traders, it looks like we have a WINNER! The $NDX gained $11.68 to end at $1,756.42 for the day. This puts me $106 from my Bull Put and $144 from my Bear Call, and basically puts me IN THE MONEY!Unless something major happens, I'll log back in Friday with my Max Profit post...and some gloating for the weekend!Happy Trading!
"Trades don't make money when you open them, they make money when you close them."
Well Traders, I LOVE, LOVE, LOVE when things I expect to happen, happen! You'll remember yesterday I mentioned the "Bullish Gravestone Doji" candlestick formation. Well, in order to be confirmed, I needed a gap up and a white candle today. Bada bing, bada zing, if that ain't a thing of beauty!I feel much better going into the home stretch here. The MACD and STO are showing strength, and the Doji pattern gave my Iron Condor the boost it needed today. I am now $91 points to the bottom and it seems barring another meltdown, my best friend, Max Profit should be paying me a visit. Still plenty of time between now and then, and today could have been a "Dead Cat Bounce," but that being said, I like my chances on this one!Happy Trading!
Well Traders, it looked like it was going to open as a disastrous day. The DOW was down over $117 pre-market and the NASDAQ was down almost $19 at one point. However, by the time the markets opened, the negativity was tempered and we actually traded positive throughout the day. In the end though, the Bears won and the $NDX closed down $13 points ($10 of those points were in the last 35 minutes of the day) to close at $1,712.94. I am now only $62 points to the top of my Bull Put with about 9 days left.In my favor today is the fact that we have a "Gravestone Doji" candlestick pattern, which could be a HUGE relief to me if the index pops a bounce tomorrow. A Gravestone Doji can be a Bullish Reversal Pattern meaning the index will bounce from here and help my trade out. I also have the 200DMA helping as support as well as the MACD and STO very low in their cycle. All these indicators may help me and point to some positive movement in the $NDX over the next few days. I could use some positive momentum about now!I am also staying out of these Low Reward/High Risk Iron Condors for a bit while I learn a new, and better Iron Condor Trading Technique. The new one will give me a MUCH better Reward/Risk factor (and we are all about Risk Management), and allow me to "Leg In" to my trades. Once I learn more, I'll let you know how I am setting them up.Happy Trading!
Well Traders, the 'support area" has been breached. I mentioned yesterday that it would have either been a safety net, or speed bump and at the beginning, it looked like the former. However, as the day wore on and folks didn't want to be short over the weekend they sold off and dropped the $NDX over $27 points to end at $1,726.03. I am now $75 points to the top of my Bull Put and yes, I am a little nervous. I have some free days over the weekend to burn off some time value and the STO and MACD are getting oversold so there may be a pullback. I also have two more support areas that hopefully will hold out for just a few more days and bring a visit from my friend, Max Profit.I have marked the 200DMA as my Next Support, and a previous support at $1,684 as my Last Support which is really my last line of defense before the trade goes sour. I also have the Channel Median Line as an ally and hopefully that can slow any further precipitous fall of the $NDX.Should be an exciting and nerve-wracking 2 weeks! Stay tuned!Happy Trading!
Ka Ching! Ring the register folks, I have been welcomed by a visit from my best Iron Condor friend, Mr. Max Profit!
