This gave me a chance to put on some more bear call spreads above the trend line for next weeks expiration. The chart below shows the set up.
The NDX is riding the top of its trend line started back on November 8, 2106. The trend marks to upside at 5265 by next Friday. I am interested in selling premium on calls around that level. Importantly, the RSI (bottom gray line on the chart below) is again in the overbought zone, limiting further strong upside moves.
Today I added to the 5260/5270 NDX calls spread for $1.15. I also rolled the 5150/5160 NDX calls to next week expiration for a debit of $2.00 which leaves me with $3.25 credit still.
I also closed most of the RUT put spreads for break even, as the RUT is very weak. The call spread at 1385/1390 that I sold just a few days ago is now nearly worthless. It expires Friday.
The SKEW rose nicely again today to 134, while as the market s fought back to gains, the volatility indexes rose.
