 Hey everybody, it's Hari Swaminathan, OptionTiger.com, thought I'd give an update today's Monday, April 10th and it's about 2.30 in this afternoon and just wanted to cover a few things about the overall market and you can see that the market has been going up and it hit this 2401 on the ES which is the S&P futures and then it's sort of been knocked off to the side and hit a low and then again once again we are in a little bit of a flat channel here. So a couple of things that you know jumps to mind whenever you see this kind of a big thing here at 2400. 2400 is a round number, big fat round number. There's always going to be a battle there and at that point at least the bears would come together in a pretty strong way that's enough and we push this down. Similarly you might find it at 2300 at 2500 so always remember these big round numbers always tend to act as support or resistance in many cases especially if it's like an all-time high and it hits that so that's definitely a conviction so if you were looking at this perhaps in the next day or two after this you would have identified a bearish trade there. Now bearish trade on the S&P means in general most stocks that are highly correlated will also act the same way so you could have taken this on any stock that correlates well to the S&P 500. Now so that was one thing I wanted to point out. Second thing is if you look at the current state it's a little weird I think some volatility is building up and so what I mean is like on a day like today I think you've heard me say before about the Wix how I don't particularly think it's a good tool for long-term risk assessment. However for the short run it works as design so you know if you look at this now today even though the market is marginally up it's not up by a whole lot but you can see that the Wix is climbing now it's gone into 13.74 it's up 87 cents and so that's telling you that you know with this latest issue with the chemical weapons and the bombing there is some fear coming into the market so options are rising in value and therefore we should see this kind of a pattern going into the next few days and perhaps it will remain at somewhat of an elevated level until there's like some kind of resolution to the problem which is obviously going to be very difficult to achieve over the short run or the medium run in any case so you can see that option prices will start increasing and that gives you better opportunities for selling premiums so whether it's a credit spread or an iron condor this would be a decent time to look at those kind of trades now you also have to be nimble because obviously because there is some exposure to this geopolitical event or it's not an event per se but just the situation itself that there is some exposure to that so if you're going to do a credit spread you know I prefer a bear call because you know you get the advantage of the volatility crush if at all the market starts to move up if you look at it from a trend line perspective obviously here was one and you know it started you know it started going down from there so that's definitely one you know trend line there and you can see that it kind of passes through or you know touches that touches that and you know coming down all the way here to the present day so that definitely is one trend line that we can draw and you can see the market is respecting that trend line the other trend line although shorter is something like this over here so because this was the other one that created a turnaround and so this is also a short term sort of our trending I mean a trend line so if we draw these two out you can see that this is a it's forming like a triangle or a wedge whatever you want to call it the important thing is prices are constricting and so you know volatility or rather the pressure is starting to build up and perhaps over the next in the future obviously these lines have not met yet the more it constricts the more there is pressure and it will sort of release that pressure in either direction so over the next week or two I would expect that we should see some kind of a bigger move there and so perhaps a straddle or a strangle may not be a bad idea as well but you would obviously want to go out a little bit further so that your time decay doesn't hurt you and so I would say something in the month of end of May June something like that would be a good straddle or a strangle case over and of course we don't intend to keep it that long all we want to do is take advantage of some kind of a move is expected over the next couple of weeks I think so even you can go longer also three months four months whatever you're comfortable with but these are some of the trades that can work in this environment that we are entering into right now so today is March I mean April 10th it's about 2.30 in the afternoon look forward to seeing you if you have any questions please send us an email info at optiontiger.com otherwise please feel free to share this video on your social networks if you liked it thank you very much bye bye