Today we are applying an Iron Condor on the XJO
Analysis:
The XJO has been tracking sideward in a broad range since roughly mid-September. The top of the range seems to be roughly 7,475 and the bottom of the range seems to be roughly 7,200.
Over the Christmas period, trading is generally quiet, with the market already seeing light volumes this week. There are also three public holidays over the next two weeks (Xmas, Boxing, and NY).
We suggest a Short Iron Condor to our clients today, with an expiry for the 13th of January. Provided the XJO remains in its trading range of 7,200 to 7,475 by then, maximum profit is made. To protect the top side, there is also clear resistance at 7,400, as well as the 50 and 100 day MAs. To protect the downside there is clear support at 7,300 and 7,250, and the 200 day MA. We suggest using 7,500 and 7,200 as technical stops.
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