Wednesday, June 10, 2009

06/10 Pre-Opening game plan

As of right now, we're 50 minuts away from market opening and the /ES is moving up by about 10 points, /TF is up 6 points, so as it seems, we'll have a gap at the opening. Now let me look at each position in terms of what needs to be done (if anything).

My attention will go to DIA and RUT at the opening, keeping an eye on price action.

RUT 30-Day Condor: With /TF around 533, its overnight high was 535. If we gap to those levels, we'll still be in conditions to keep our profits from Yesterday, there is not much to be done, except wait for a pull back and possibly hedge or take the position off the table.

MDY 30-Day Condor: Good thing we hedged the position Yesterday, with MDY hovering 110, we'll be in decent shape, with profits to be made if we gap up and close the gap back down. Not much to be done, except placing some alerts at 111, just so I know where we are.

DIA Iron Butterfly: I took one of the short call spreads off the table Yesterday, that will help me with this up-side move. DIA is hovering 88.50, the gap opening will be at just about the profit levels from Yesterday, so we're only giving up the one-day time decay. I'll have an alert at the overnight highs, and will keep on watching price action. If we continue to push higher I may have to hedge, so before we open I'll look at how I can cut the deltas down once again.

SPY Double Diagonal: will be slightly negative at the opening, still far away from any adjustment levels, just keep an eye and place alerts within 1 st. deviation up and down.

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