Things will slow down likely this year end as it usually does. liquidity and volatility tend to slow down as holiday volumes and activity slow down.
Given where the equity indexes are, Im happy taking some bear call spreads on against some of the long bargains I hold. Theres a good chance we pull back and retest support.
Crude oil and gasoline have been leading to the downside in commodities and I believe are the canary in the coal mine that will tip the markets hand to test averages in equities.
A bear call spreads is when you sell a call and buy a smaller farther call higher up, making a spread or percentage trade with defined risk. 45-60 days is typically desirable for gamma management and optimal time decay.
Let me know what other trades youre considering or doing in case of a slow december. Cheers!
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