Condor Options

Remember those tests in school when you were a kid? Here’s the question before us right now:

Where’s the market going?

A: Up

B: Down

C: Sideways

D: Not enough information

DJI is trading right at its 200DMA as we speak, and while that 300+ point day was nice and everything, nobody really “believes” in it yet.

SPYs are still a full point below the 200DMA, and given that it’s options expiration week we might not see a retest until next week. We’d like to wait to see what happens at the next retest before committing to a position there.

QQQQs are still well above their respective 200DMA, in spite of that recent nastiness – and that’s why we already have a position there.

VIX is holding its nice uptrend on the daily chart. Also, check out the CBOE’s new volatility product, the VXV. It tracks the 3-month SPX implied volatility (the VIX tracks 1-month IV). Good commentary from Adam and Bill. Those other two new products (VPD and VPN) are interesting, too.

[tags] market commentary, options trading, indexes, DJIA, DIA, SPY, QQQQ, VIX, VXV [/tags]