Monday, June 22, 2009

06/22 SPY Double Diagonal

This is the 3rd week on the trade, and the question I ask myself is: do I want to stay here? We're approaching the level where the adjustment point is no more than 1 st. deviation in the volatility cone, from that point on, adjusting is simply part of the expected law of probabilities.

I'm looking for a small retracement Tomorrow so I can take this trade off the table. If we open crashing down, then I might stay for the ride and take my chances adjusting, otherwise, 5% is good to me.

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