Option Traders, going into next week I have a few things I will be trying to do. I will certainly be setting up for the holiday season coming up at the end of the year.
I will accomplish this by selling premium early and often.
My hope is that the employment numbers tomorrow kind of stink and the market continues today's down trend. If the VIX will be kind enough to pop over 25 again I am going to be jumping in.
My thoughts are to buy a January-February double diagonal. This will get me short the holiday month, and the January earnings cycle. I also am going to sell a few iron butterflies and if we get a big jump on a condor or two. Obviously I will try and trade the Pure Vega trade then roll that into a short gamma position.
Traders; I will not be planning on having any real positions going into the holiday season (save possibly the healthcare trade). There is little reward and loads of risk to being in the market place during the low liquidity, low volatility doldrums of the end of the year.
Stay tuned for the mail bag tomorrow, I have about 4 good questions to answer. This is the last chance to email me, mark@option911.com, any questions you might have about life and trading.
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