Condor Options

Late last month, somebody asked whether [tag]tech[/tag] was safer.  For those of you playing along at home, the correct answer was, and is, “Yes.”

Today, the [tag]Nasdaq[/tag] 100 continued to do what it does, and the [tag]QQQQ[/tag] closed up 1.6%.  We currently have an [tag]iron condor[/tag] position open in QQQQ, and the index actually (though only briefly) kissed our short call strike of 50 today, before a little afternoon selling showed up.

Rather than speculate about today’s action, we’ll leave you with the fact that the 2-day [tag]RSI[/tag] on the cubes sits at 94.10, which is obviously not the absolute max, but is pretty darn overbought.

Oh, and the [tag]VIX[/tag] is meanwhile getting ready to test its 50-day moving average.  A bounce in [tag]volatility[/tag] would be kind of expected, but a continued drop would not necessarily mean all that much, since we kind of just skipped the whole 15-22 range back in late July.