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Today we are applying an Iron Condor on the XJO

Analysis:

The XJO is currently trading at 6,745 points.

The XJO has been tracking sideward for the past few months. Recently, the range has tightened, with the XJO channelling between the key resistance at roughly 6,850, and the key support at roughly 6650. This range has kept the market from rallying or falling despite strong moves from the U.S

Broadly, the market is consolidating, and this may last several more weeks as news remains mixed and unable to spur continued directional movement.

We can trade this by implementing an Iron Condor with sold legs at roughly 6950, and 6650 and an expiry for the 8th of April. These strikes and expiry net us a great credit and provided the XJO stays between the sold legs come the expiry we make maximum profit. In addition, the market is closed over Easter, netting us an extra two days of free time decay.

The 6650 sold leg is below the key level at roughly 6,666 – a level the market has been reluctant to break recently. The 6950 sold leg is our post-pandemic high.