With the August expiration being only 2 weeks away and September recommendations starting next week, I though it would be a better idea instead of adding supplemental plays for August, would be putting on a couple of iron condors on several of our current positions.
We are going to recommend the following two put credit spreads on our BIIB and SGR positions.
We are recommending the following credit spreads, which will complete iron condors on BIIB and SGR.
In addition, these two positions should not require any additional margin with the right broker.
put credit spreads = bullish credit spreads.
September recommendations will begin next weekend.
DJX SEPTEMBER ROLL:
This market has a mind of its own, so the following decision depends on how much you feel the upside
has been overdone and how difficult the next resistance level will be to penetrate.
For those of you that have enough margin and would like to minimize the loss from August, we are recommending
strategy #1 below:
For those who do not have enough margin we are recommending strategy #2:
please realize that strategy #1 and #2 are the same trade, but require different number of contracts.
STRATEGY #1: For those that have enough margin ( we are recommending doubling the number of contracts to 100.
STRATEGY #2: For those that DO NOT wish to double the number of contracts, you can just do the normal 50 contracts.
In addition for those that have the margin and want to be a little more conservative, but wish to use 100 contracts,
we offer you this SUPPLEMENTAL 3rd strategy.
And of course if you desire to use just 50 contracts this would apply to you.
Also, there remains the possibility of adding the put side of the trade if the market so dictates.
NOTE: The doubling up strategy can help to significantly lower the losses from August, if we are successful.
However, even with this run up the possibility always exist for an even higher run up, and if the would be the case
we need to be prepared to take the loss or, if margin allows, to roll again.