Tag Archives: Iron Condor

Red Candle

The Mayan Apocalypse Trade: Iron Condor

Red CandleDon’t forget that December 21st is the end of the Mayan calendar and if you’re preoccupied with the apocalypse, light a candle for John Cusack.

In the US, underground shelters and handguns are all the rage as solar disruption should be arriving by Wednesday. In Europe taxi service will be available from a plateau in Bugarach, France. And in China 3 days of darkness is predicted; citizen believers are scrambling for smart-phone batteries and anonymous Sina Weibo accounts.

Consensus is hard to find between continents but among traders, one particular options trade stands out, The Iron Condor.

You won’t get burned on the wings.

Monday’s Pre-Market Assumptions

Regular readers know I hate to trade on Monday’s, but today the bias (atleast mine) is for an upside move. I think we’re going to take a short break from the selling, step back and listen to what European politicians try to sell us, and start looking at the advantages of oil pulling back. My short term assumptions this morning are:
  1. No bad news is good news
  2. The European spin machine worked wonders (BNP up +4%)
  3. The VIX will be taking a rest today

Back to Discipline

  1. One long ES Future, for fun.
  2. Condor Spread Adjustment, probably on the short side this morning.

Good Trading.