VIX6 – SPX Trade Update #3
Good day Insiders,
This market is running higher and higher. +60 point move higher in 2 days. Is this the end of the bear market and recession talks? Hardly, in my opinion as the talking heads on CNBC are there to continuously sell, and often enough it is fear. That being said we have a trade to deal with as the SPX has found its footing and it looks as though we are off to the races. In all honesty, I do not share the same enthusiasm, I am absolutely bullish on the market for the year and as January draws to a close, we still have 11 innings to go.
Expressing my opinion here, the way this market has shot up in the last week of January seeing a low of 2612 and a high of 2708 where the market closes seem to keep indicating that there is less and less steam on this current uptrend. So what are we going to do with our SPX trade we placed a few weeks back? Let’s adjust it and buy it more time.
Rolling the spread out 1 week will use an added $7,900 in margin but it will also require much less of a down move in the SPX for it to turn profitable.
Risk & Reward
Rolling this trade will bring in an additional $1,400 credit and of course will add a bit more risk here, and while we were less bullish on the market, it appears as though we were just a bit early.