Problem Child?


Expiration graph of weekly unorthodox SPX option spread. The graph is lopsided, anticipating upward price action. It began as delta-neutral iron condor. With the sharp move up this morning, a butterfly and a calendar spread were added as adjustments at the key 1855-60 region. The market is taking its time. But underneath there is still strength.

Not really. I know what to do. If the price goes to 1840 and 20 Delta tomorrow, I’ll add a number of calendars at 1825– a likely spot for a showdown (speculation).  A move to 1812 means someones (or somewho’s) mean business. And that business is seeing the market retreat. But I’ll believe it when I see it. For now I think the S and P 500 will be content to crawl the channel line North.


The S and P 500 cash index, daily chart

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