While all teeth were a chatter about what Big Ben might say, what has set the traders’ selling fingers a twitter was Intel’s (INTC) cut in its revenue forecast.  Despite a moderately better than expected GDP the prospect and BB claiming he may have more unconventional methods at his disposal the INTC release carries the real weight. Coupled with last night’s reports from retailers such as J Crew which lowered Q4 guidance adds to the notion the argument for a double dip is not only back on the table but the centerpiece.  

The 1040 was retested today and held once again.  Will this trade work one too many times or is it a sign that true value and buyers are willing to step in at that level and a healthy base is being built?

I have had a few orders over the past few days such as a SPY iron Condor and selling a TLT call spread that did not get filled, but ain’t it a fact the good ones always get away, but still feel comfortable with the portfolio’s relatively few and limited risk positions.  They are now mostly in the red but there time remaining support levels remain in place. 

Today I will be looking at taking advantage of the lingering skew in the S&P 500 options which are still pricing in an increase in volatility heading into Autumn.  This will ikely take the form of a calendar spread that collects premium but has protection against a move in excess of 10% over the next three months.