Condor Options

Exiting XLE Iron Condor After Some Good Defense

Wednesday, June 18, 2008

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We published the following bonus trade for our members back on May 2: Buy to open XLE June 70 put Sell to open XLE June 72 put Sell to open XLE June 90 call Buy to open XLE June 92 call for a net credit of $0.47 or better. Anyone following this trade should have already exited – remember, we want to be out of any front month short options by Monday of expiration week at the latest. Negative gamma risk during expiration week is ever…

Playing Defense First

Friday, June 6, 2008

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As you probably saw, the markets staged a broad-based rally yesterday on reasonable volume. The rally kind of came out of left field, as there is still a major divergence across the market indexes, and getting long here seems like a rather risky move. For that reason, we do not plan to adjust our June positions at this time. There’s an old saying that “markets tend to crash down, not up.” But bromides aside, as we have written elsewhere, iron condors…

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Exiting XLE Iron Condor After Some Good Defense

Playing Defense First

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