Monday, October 4, 2010

Morning trade...

Heads up, cumulative ticks are trending sharply lower in the past 45 minutes. Volume is extremely low though so this may be another bout of profit taking before the next leg up. All the studies and commentary from all around the web suggests more upside to this market. Right now the market is struggling to clear the 1150 on the SPX. Perhaps today's action will suck in some more bears before we get a gap and go situation that will finally give us the thrust higher?? Who knows.....

 At this point in time, I did manage to leg into my ZB iron condor with short put spreads at 126/123 and short call spreads at 141/144. All done for a credit of $3937 on $14062 of risk. At this point in time the trade is up $473. I'm thinking of buying insurance on both sides here as I'm fearing a big move sometime further out. This market just seems a bit docile to me and I just don't trust it given what's transpired over the last 24 months. I'm betting volatility will rise at some stage......(you don't have to be a genius to make that statement!)

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