Watching Paint Dry Into Options Expiration

Are you following BookingAlpha on Twitter? Check us out at @BookingAlpha and gain even more insight to our thoughts, plans, and trades. The S&P has muddled through a 15 point range for the last 8 days. The Average True Range (ATR) for the index has plummeted from 18 to 14 and continues its decline. Trading volumes are practically non-existent prompting the question, "are the exchanges even open". Trading this market is like watching paint dry. Our trading has been quiet lately as well. With such light liquidity and heavy volatility compression there is no reason to sell new credit spreads here. We are happy to wait for the right opportunity to present itself. Remember: 1.) Cash IS a position. 2.) Sometimes the best trade is the one you DIDN'T make. The Monthly Trading Service is positioned well heading into OpEx. Our IWM Iron Condor is setting up nicely for a worthless expiration and maximum profit. Last week we adjusted the SPY & DIA Call spreads to mitigate risk and generate additional credit. For details please refer to the post: More Sideways Chop, More Flat As A Pancake, Plus Opportunistic Adjustments The Weekly Trading Service is in decent shape as well. Our Aug SPY Call Debit Spread Hedge is set to yield max profit at expiration on Friday. Our other 2 positions may require a little more time to materialize. If no weakness occurs in the next 2 days we will roll adjust our expiring DIA Put Debit Spread Hedge and SPY put into September. We have no problem with short exposure under these market circumstances. If roll adjustments for the Weekly Trading Service puts are indeed required to September we will first roll the positions first and then hedge our exposure by creating spreads at some point shortly thereafter. Details will be meticulously laid out in the trading alerts. Don't worry, we got your back! Until normal trading volumes resume, there isn't much to be done in this market. Things should start to pick up next week. Until they do pick up, we are happy to sit and wait. Thanks to everyone and have a great weekend!!!