“MARKETS IN TURMOIL!” — they said.
But yeah, it certainly feels like it when seemingly every “relief rally” is met with fierce selling.
In our morning analyst meeting today, the team was lamenting the fact that it seems any levels of support that might seem obvious are proving to be nothing more than mirages. Levels are getting taken out everywhere.
This makes it increasingly frustrating to put on any kind of range-bound delta neutral plays. Yes, volatility is high and its very tempting to put Iron Condors or Strangles on here. But if we’re looking for instruments that are likely to stay within a certain range, we just don’t have any confidence right now in any levels on our screens.
Ok, so how about we bottom-fish for some bounces? [Read more…]