Index Option Trader

Periodic Market Analysis

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January Trade Commentary - January 15th 2008

21 Jan 5:21am
Posted by indexoptiontrader
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With the recent downturn in the market for yet another session, it's looking like the SPY is going to pierce the lower breakeven price at 137.59. According to our rules, we have a standing conditional order for the autotraded positions to close the position out at the market if the SPY price violates the breakeven price. From a statistical perspective, this price movement (without any reversion to the mean price) is a rare event to say the least, but will happen from time to time. ...
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January Market Analysis Update

Tags: Iron Condor, Options
8 Jan 11:57pm
Posted by indexoptiontrader
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January 2 , 2008 As we wait for the market to enter into a prime entry zone for our January trade, I thought that I would reflect on the market conditions of late. As far as the first trading day of 2008, it was a complete downer to the tune of 220 points to the downside. A poor ISM report and nervous comments from the FOMC minutes aren't adding any positive marks to the bull's cause. In terms of economic reports, we have Auto Sales, ADP Employment, Jobless Claims and Factory Orde...
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November 2007 Post Trade Commentary - Nov 12, 2007

Tags: Iron Condor, Credit Spreads, SPY, Investing, Index Options
22 Dec 10:58pm
Posted by indexoptiontrader
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Our November SPY Iron Condor was filled at a debit of $0.47 to flatten our position. This is a $0.12 loss from our original fill at $0.35, resulting in a loss of 7.2%. Given this extremely volatile market, we're glad to flatten out at a very small loss without increasing the risk of the position. The market continues to move in a sideways fashion, yielding very unpredictable price movements. We will continue to watch the market but stand by our exit according to our trading plan. We don...
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October 2007 Trade Commentary - Oct 11, 2007

Tags: Iron Condors, Investing, Credit Spreads, SPY, Index Options
22 Dec 10:56pm
Posted by indexoptiontrader
0 Comments
Just as I was writing this commentary for the October SPX and SPY trade, the news came across my wire that European Central Bank governing council member Axel Weber said the bank may need to raise interest rates to a level that restricts economic growth to keep inflation under control. As the news was coming across, I was writing about how the SPX was breaking out to the upside above its previous swing highs at the 1556 levels. This technical move known as a breakout, signaled that the ...
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indexoptiontrader

Index Option Trader is a monthly newsletter investing advisory service. We initiate Iron Condors on a variety of index ETF products each month. Our mission is to provide a service for investors to achieve consistent gains month after month, while maintaining a low risk, probabilistic approach to trading. Please visit us at www.indexoptiontrader.com

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