Volatile Opening and Position Updates

With MER being forced to sell itself to BAC, LEH filing for bankruptcy, and AIG looking to sell its most valuable assets in an attempt to survive, it appears that the world is coming to an end.

Despite the strong down market this morning and the surge in implied volatility – as measured by VIX (+15%) and RVX(+14%) – our iron condor positions are not in any trouble (yet) and can be held without adjustments.

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2 Responses to Volatile Opening and Position Updates

  1. dave 09/15/2008 at 10:42 PM #

    This seems to be a really good time to open iron condors. Implied volatilities have spiked significantly and now that the market has broken support the call spread can be sold above resistance and the put spread can be open out of the money below the recent support levels instead of at previous support or just below. This is making condors extremely attractive now for the october series options. I will be starting some condor positions on the open tommorow.

  2. Mark 09/16/2008 at 8:17 AM #

    I agree. When most are afraid to act is usually a good time to capture some of that high implied volatility.
    Of course, the market can drop further and IV can increase, but the chances of success are decent right now.
    It’s a volatile market and don’t get overconfident by buying more than your usual number of iron condors.
    Bets of luck
    Mark