Condor Options

People were asking for these all day today. The trades themselves should be pretty obvious if you buy the thesis.

Thesis: Markets are short-term very oversold. 2-day RSI readings across the board make infinitesimals look large. As this is published, we’re trading near the lows of the day. What does it all mean? It means you should panic. Sell everything you have. Then convert that cash into pennies. Then hide those pennies under your mattress.

Trade: Kidding, that’ll only make you a poor person with back problems. Some bounce ideas:

• The SPY Jan 139/140 put vertical gives you a $0.34 credit with just 14 days until expiration.
• You could buy VIX Jan 22.5 puts for around $0.70. But that actually might not be a very good idea, as the VIX is (troublingly) a little quiet relative to the recent market action.
• DIA 130 calls are $1.34. Sometimes with these directional plays you want to keep it simple, no?

Oh yeah, and NEM is down today like everything else in the universe. So now might be a good time to think about yesterday’s bonus trade.

Ack, almost forgot the disclaimer!  Disclaimer:  In all seriousness, these are perilous times for our markets and our economy.  Criminal mismanagement by our government and by risk-blind hacks on Wall Street has put the well-being of the rest of us on Main Street in serious jeopardy, and none of our fundamental economic problems are going away soon, and not without some hard decisions by competent, serious-minded political leadership.  Oh, and don’t trade these picks.

[tags] bonus trades, SPY, VIX, NEM, volatility, RSI, markets[/tags]