Haven’t we seen this rom-com before? You know, the one where Trump and Xi plan a date, Xi cancels the date, Trump ghosts Xi, Xi makes Trump jealous, and finally, the two run into each other’s arms as all their bffs look on with corny smiles on their faces? I don’t know which stage we’re in, but the messiness of the US-China trade relationship was enough to knock the market down a bit yesterday. But who’s fooling whom? Right now, neither can live without the other and the market could very well bounce back on a single tweet. That’s why a broad index like QQQ could just trade in a wide range as the ups and downs of the movie play out. And despite the low IV rank, there’s still some premium left in QQQ options that could create opportunity. If you think QQQ might stay in a range for the next month, the short iron condor that’s long the 158 put, short the 160 put, short the 176 call and long the 178 call in the March weekly expiration with 42 DTE is a neutral strategy that collects a credit 1/3 the width of the strikes, has a 68% prob of making 50% of its max profit before expiry, and generates $1.01 of positive daily theta.
Opened 19/02/08 for $.75 credit
Closed 19/03/07 for $.45 debit