Condor Options

Like anyone else with half a brain and an once of honesty, we wouldn’t begin to dare to predict where the market will be by this time next week. So we look for some relative stability – not so much trying to eek out any substantive divergence in [tag]correlation[/tag], more to put our eggs in baskets that stand less chance of being overturned.

As you can see from the chart, the [tag]NDX[/tag] (Nasdaq 100) performed basically the same as the [tag]SPX[/tag] (S&P 500) during the recent unpleasantness. But tech is still stronger on the year, and more importantly, the Nasdaq isn’t as vulnerable to the [tag]financial[/tag] sector, which means that if you think that this credit/[tag]liquidity[/tag]/mortgage/[tag]robber baron[/tag] stuff isn’t completely over yet, you may want to take a look at tech.

Yes, thanks for asking, it is kind of weird to be calling “safe” the sector that gave us the dot-com bubble. In any event, we already have a [tag]trade[/tag] open in [tag]QQQQ[/tag] for our members.