Tuesday, February 12, 2013

Closing of IWM Bull Diagonal Call Spread

After 2 months into the bull call spread, the long Delta has risen from 0.65 to 0.85. The short call had been rolled up a couple of times. Now my target Delta is reached. The Market Sentiment (~85) is now in overbought area. The leading indicator I used when placing the trade was EEM/HAO. They have been pulled back more visibly from their charts.

My past experiences suggests a market pullback within 2 weeks are likely. But if market section rotation works successfully, the intermediate term uptrend will continue, creating profits for many other people.

Created with ProphetCharts®

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