Market Overview

Back To (Mostly) Cash

The pull back this week offered a nice opportunity to close 2 Bear Call Credit Spread trades in the Monthly Trading Service and an Iron Condor in the Weekly Trading Service:
 
Weekly Trading Service:
March23 1360/1365/1420/1425 SPX Iron Condor - expired worthless for +7.53% in 3 days.
The Weekly Trading Service is now back to 100% cash.
 
Monthly Trading Service:
April 1460/1470 SPX Bear Call Credit Spread - closed for +5.56% in 3 days.
April 1425/1435 SPX Bear Call Credit Spread - closed for -23.04% in 10 days.
The Monthly Trading Service is now back 80% cash with one open trade: a RUT Bear Call Credit Spread which is in great shape
 
The nice thing about pulling the trigger and closing the Monthly Service trades this week, although one resulted in a loss, is that we are now able to eliminate the risk of any plagued trades and reposition our capital into future higher probability positions with greater profit potential. Kind of a "wipe the deck clean" scenario. We have been caught like many others lately on the wrong side of a strong sustained move higher. Getting back to mostly cash allows us to manage opportunistically going forward instead of defensively managing threatening positions.
 
With month/quarter end approaching, and earnings releases shortly thereafter, and the S&P right at 1400, a rise is likely to occur past the recent high of 1414. That is why we pulled the plug on the SPX 1425/1435 spread this week taking advantage of the opportunity to close for a much smaller loss than we were facing previously. Our goal is to limit losses and keep them small and manageable when they occur
 
Thanks everybody and have a great weekend!

The following article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.

Posted-In: Global Markets Trading Ideas

 

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