Archive

Today is the last day to trade our option series on the Russell 2000 index (RUT). RUT has not achieved its profit objective, so it is prudent to roll now to avoid any time lag between rolls. Northrop Grumman (NOC) has not achieved its profit objective either and the 355/365 put spread of the iron condor is partially in-the-money and has little time value remaining, it is prudent to roll now to avoid a larger closeout debit tomorrow. We will roll VMware, Inc. (VMW) tomorrow. Read More

The strong bullish price action the market has been experiencing has been crippling our double diagonals and iron condors. Eventually, the market will slow and when it does we'll be ready. The Russell 2000 (RUT), VMware, Inc. (VMW) and Northrop Grumman (NOC) will be rolled later in the week. Read More

Market conditions say it's time to have another go at the double calendar option strategy. Double calendars are vega-positive neutral-bias just like double diagonals and also benefit from stock price movement near one of the short option strikes, but are much more forgiving if the stock moves more than expected above or below one of the short strikes. Additionally, margin requirement for double calendars is much lower than double diagonals because the short and long strikes are the same. Read More

With an elevated VIX and uncertainty of market direction from coronavirus fears, now is a perfect time to enter a vega-negative and neutral-bias iron condor on the range-bound Tractor Supply Company (TSCO) Read More

The put spread side of our February 21st Iron Condor on the S&P 500 Index (SPX) is far out-of-the-money (OTM) and has little time value remaining, it makes sense to roll up the put options allowing us to collect a substantial credit that will be applied to the overall trade. Read More

The Nasdaq 100 Index (NDX) has been a beast, breaking January's historical tendency of a peak and trough. Even though there is no risk of early or automatic assignment, it is prudent to roll now to avoid a larger closeout debit at a later date by converting the call spread to a later dated conservative iron condor. Read More