Observations
Proposed trade
I believe there's an opportunity for an iron condor here. I plan to set the short put leg between the 100 & 200 MA, while the short call leg can be set ~ the 1650 or 1700 level. This would be ~10 delta on each side.
- Although there big engulfing red candle today, the 50MA held.. barely. The body of the candle closed above the 50MA. Such strong bearish movement is likely going to continue tomorrow and it will likely test the 100MA.
- There are some strong supports though. The candle closed above the trendline, in addition to the 50MA support.
- The next support would be the 100MA and the "middle of the Bollinger band". They seem to be converging at the 1500 level.
- The continued decline is likely consistent with the bearish momentum in the SPX & NDX
Proposed trade
I believe there's an opportunity for an iron condor here. I plan to set the short put leg between the 100 & 200 MA, while the short call leg can be set ~ the 1650 or 1700 level. This would be ~10 delta on each side.
