The chop fest continued this week; however, the structure of the markets leads us to believe that a big move into new highs is just around the corner.
During phase one of the squeeze (the buildup of energy phase) the iron condors we’ve been selling over the last three weeks have been a great source of weekly income while making our jobs of sitting on our hands that much easier. This week we were able to close a little over $2,000 of profits from our condors.
Though the markets lacked any meaningful momentum this week we were still able to walk away with profits on our swing trades. This is one of the benefits of trading strategies like credit spreads… you get paid with the passage of time!
We were able to close both of our put credit spreads on CAT for 75%+ of max profit (good for $2,000), as well as our GOOGL spread (both shown below). We closed GOOGL this afternoon for just about 80% of max profit, which was good for a $15,300 profit (P&L below).
Both CAT and GOOGL still look poised for moves into new highs, as do a few other names we’ll be covering this weekend in Sunday’s prep time video.
The name of the game is patience right now. Patience to wait for ideal entries, patience to sit through the chop, and patience to let your trades unfold in your favor.
Phase two of the squeeze (the release of energy phase) feels like it’s just around the corner, and that’s the move (driven by the indexes) that we believe will provide our next round of profitable trades. Stay tuned for Sunday’s video, as we’ll dive into some setups we’ll be looking to trade over the next few weeks.
Stay Focused!