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Category: Dr. Duke's Blog
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The markets began the day somewhat weak, but then seemed to slowly but steadily strengthen as the day went on. Traders took some confidence from the increases in the August PPI numbers - higher prices normally suggest more demand for goods. RUT closed at $605 and the SPX closed at $1053. Seven of the last eight trading sessions have been positive gainers - a rather impressive record.

My September iron condors are being squeezed on the topside; I am looking for the right opportunity to close the $620/$630 call spreads. The position stands at +$2,050, delta = -$244 and theta = +$1,418. That large delta reflects how close the index is to our short call strikes - truly alarming if we weren't so close to expiration. I added a Nov $640 call to my Oct iron condors today for $1,160. They now stand at a net loss of -$465, delta = -$53 and theta = +62. If the markets continue upward, I will add one more long Nov call.