Slow Week

Its Christmas week and volumes are low and the action yesterday was fast in the first hour then slowed down. I really don’t expect the volume to be explosive or price action to move too much.

Yesterday the $SPX momentarily broke the top of the range I’ve been talking about. It looks like we closed on resistance or just slightly above it. All that means to me is that we have a higher probability of pulling back. Also the $VIX is extremely low considering where it’s been, now my thoughts were for a $VIX in the teens by the year end. That could still happen, but when we get down here setting long Vega trades just seems right.

Yesterday I cleaned up some of the positions in my portfolio, including my double diagonal and iron condor. I also am setting credits and debits on the $RUT, $SPX and $NDX. As of now I have not set any short call credits, I think I will be able to get more premium out of the calls later in to this cycle.