Rangebound?!?

Well Traders, I hope you had an enjoyable holiday this year. I did, capped off with a wonderful Rose Bowl victory for my beloved Alma mater, USC.

Since my last post on December 20, the $NDX has been in kind of a stalemate. The index has been sort of rangebound between $1,750 and $1,824. If you were a gambler, you could try an $1,850/$1875 Bear Call and an $1,725/$1,700 Bull Put for a pretty good risk/reward ratio, but I wouldn't. While the $NDX looks all warm and fuzzy in its new range, how much of this stagnation was due to two very long weekends with two major holidays? Right now I wouldn't put too much stock in it.

I should be getting into February's Iron Condor trade this Thursday, January 4, which will be six (6) weeks away from the February 15/16 Expiration date for the $NDX. Since the market is closed today, I'll start my risk/reward analysis tomorrow and post it for all to see.

Until then, R.I.P. President Ford (and your Michigan Wolverines!)