The Rally Continues, Capital Is Put To Work

1.) Weekly Trading Service - SPY Iron Condor

2.) Monthly Trading Service - SPY Iron Condor using June Quarterly expiration (expire 06/30/2012)

3.) Monthly Trading Service - SPY Bear Call Spread to re-create an Iron Condor with an existing Put Spread. This position was previously an Iron Condor but we closed the original call spread for profit on 6/1.

Markets continued higher today and we used the rally to deploy new spreads. This rally is getting a little overbought short term. That fact, coupled with fast approaching Greek elections and that another test of the 200 Day MA or at least 1300 still needs to occur, provides a great opportunity to scalp some option premium.

The Monthly Service is in great shape as the existing put spread (IWM) and the Iron Condors (SPY & NDX/MNX) are in very comfortable shape as June OpEx approaches next week. Today's new quarterly Iron Condor is positioned well for whatever [additional] volatility may enter the market as a result of the Greek elections....and whatever other Euroland headlines hit the airwaves in the near term!

The Weekly Service trade entry criteria has been adjusted slightly to in response to the rough run lately and the heightened volatility in that markets. We are using narrower width spreads (meaning they are 1-point wide vs. the typical 2-point wide structure) which allows us to position even further OTM. The skinnier spread widths results in higher commission costs due to more contracts being traded but risk is mitigated by moving further OTM.

Thanks and have a great weekend!