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TP Says...
Thursday, March 26, 2020
Just when you thought the market might drop another 20%, in steps Congress with a  $2 trillion bailout.  News that the various factions had hammered out an agreement on how all that money would be distributed stopped the bleeding in stocks.  But yesterday, noise from Bernie Sanders, Inc. that they had problems with the bill and might delay it put an end to the bounce and sent the market down for the last hour before the close.  Or at least that’s the news that was slapped on the price action of a standard normal variable.  The two-sided trading suggests maybe the market will do some backing and filling at these levels and stay in a wide range.  IWM, which still has a 75% IV rank, offers attractive option premiums fairly far OTM, which you might consider using if you think it might not make a consistent move higher or lower for the next few weeks.  If you think IWM might trade in a range, the short iron condor that’s long the 85 put, short the 87 put, short the 128 call and long the 130 call in the May weekly expiration is a neutral strategy that collects a credit 1/3 the width of its strikes, has a 73% prob of making 50% of its max profit before expiry, and that generates $1.33 of positive daily theta. 
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