Friday, February 19, 2010

Condor...SPX

If you have not heard the Fed raised the discount rate yesterday. They want to bring back regular monetary policy; I think this will be a one day event. But with this one day event volatilities are going to be higher and premiums are going to be juiced. I also think this volatility pop we get today will quickly get crushed back down next week, so today I will be selling Vega.

The plan is to sell a low probability condor, below is an idea of what I will be doing. As always I will keep you posted on my actually position.

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