Hello Traders!
I closed the FXE position on Monday due to the market action. I tweeted it out. There has not been a bounce at all and I feel that there is going to be a test upward due to the huge down move. May not be sustainable, I have enough trades related to the dollar so I just took the risk off.
Other exciting news. Oil Prices continue down again after the close today they announced that there is going to be another large build in oil. Imagine that. I think the major driver at this point is the dollar and if the FED takes the foot off the “ease,” gas pedal then it just adds more boost to the dollar and headwind for oil. I really am not to happy with it at this point due to having a condor on USO. I am most likely going to roll the whole position down. I have almost a max gain on the Call side and just in the current spread of the put side. I can roll it down and get even money of the cost of the trade less commissions with the price at the close. Obviously, that is going to change it up a little with the move down in oil in the after market hours so USO should open down a little further. My goal is to stay in the same expiration month and roll the trade down in price. It will be interesting to see if oil gets into the 30s. The trading action will be interesting and what I will be watching the most tomorrow. You can see the USO iron condor position as well as all my other positions in the newsletter I published this weekend. Click here to get you there.
I have NKE that I have a long call position in that expires on Friday. It is the first leg into the trade for earnings. I would like to see NKE move up about a dollar from here so I can leg into a bull call spread with little cost into earnings. Then I will have little exposure to the downside and an opportunity to make the full price of the spread. More details to follow on this trade.
The huge FED announcement is tomorrow. What will the market do…. Is anyone tired of hearing about the word, “Patient?” Enough said.
Have a great St. Patrick’s Day!
Option Coach