Condor Options

Quick review tonight: the markets have moved well off the overbought levels we noted a few days ago, and are now actually approaching relative strength levels conducive to a short-term bounce or pause. Volume has continued to be unimpressive. Perhaps more interesting is the fact that volatility has just drifted lower along with this modest selling, which typically doesn’t occur.

Our April positions are all showing significant profits at the moment, and a few more favorable days of trading may have us itching to take some profits off the table. We expect to see some buying into the March close, and this current indecisive state should be resolved by next Tuesday or Wednesday at the latest. If the markets move down, we’ll be sitting pretty; if this small rally resumes, we may have a nice opportunity to put on a small April or possibly a May position.