Friday, November 18th, 2016

August NDX trade – update 8/5/2008

With a strong rally today DOW up 331 and NDX up 64.92, the bull put spread has diminished in value down to 25 cents. Because the markets are in rally mode, completing an IRON CONDOR is risky and and counter productive. The markets will start reaching your short strikes and there is not enough premiums.

Time will also take toll on this spread which now has a 100% probability of success. So we may just leave it alone till expiration or just buy it back for 10 cents earlier and release our margins into something new. The distances to the short strikes is 219 points and 14 days to go. Its sometimes wiser to close these trades when the theta of the current month is lower than the theta of the next month or for a better trade. Will keep you posted on the matter.

Comments

One Response to “August NDX trade – update 8/5/2008”
  1. Алена says:

    Советую подписку на ленту новостей разместить на видном месте! Читателей будет больше! Особенно на таком блоге, как у вас! Пробовала – у меня на 50% больше посетителей стало!

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