Let's Sell some US MARKET Volatility ...

The Chinses Connection fell through ... big time. China's stock market is collapsing. Down, down, down! I lost a good chunka change on the ASHR iron condor.

I don't think that the same thing will happen in the US. Right now volatility has spiked because stocks have broken slightly out of their year to date trading ranges. Investors appear to be worried about Greece (I really don't know why) and the Chinese stock slump.

I won't give market commentary. I hate that. So instead I'm just gonna sell an iron condor on the Dow Jones average ETF DIA. 

It looks wider than it really is. Only a 53% PoP on this one ... however, my short strikes are at significant support and resistance areas. I think therefore that it has a higher PoP, but not statistically if you assume random walk.

-6 DIA 8/21 166/168/183/185 @ 0.75

On the same note, the VIX is spiking for the same reasons. Ordinarily, I would sell a bear call spread in the lows 20's (its at 18-19) on the front month, but because those expire next week, the VIX might go fairly high before coming back down to earth. Instead I sold naked calls farther out and away from the market. They have a 93% PoP.

-2 VIX AUG 28c @ 0.80

Here's a new thing,

Summary:
Max Profit: $598
Capital at Risk: 5.8% (floating)