Finally my 2015 area of mS was hit this morning and I was able to back ratio my 209/210 call credit spread by 1 contract. So I took a small profit on my short leg and my position is set to for price to go back up and make a new high. My long target is 207.50 where I'll look at taking more profits from my long legs. Here is what my Iron condor looks like after the back ratio.
back ratio - Click on to enlarge
I also put on a new Iron Condo in the SPY 65 days out to June 17th. I'm going further out since the volatility is so low and is the same reason for selling the Condor. I used to just sell the Puts but with the markets low volatility my short side won't crush in value as it would if we had high volatility. The Call side gives you protection in case the market does not bounce here and continues on the downside. If the market continues to the downside, I'll back ratio my Put side covering a short leg getting my position net net short and continue the process of taking profits at Support and Resistance areas. Here is my new Iron Condor I sold 5 contracts on each side.
Iron condor II - Click to enlarge
Do I know where the puck is going? Well yes, It's going to the target, my T1 and T2 areas. Now knowing where the target is can be easy at times, but when it will get there is the million dollar question and that is the reason that I sold the Iron Condors with 65 days to go giving myself plenty of time (I hope) to be correct...
ES 03242016 Thursday
