Strangle Nirvana

I’m still not entirely sure what I want to do with this structure. And since there was uncertainty at the end of last week, I rolled half the puts I took at the highs that immediately went in my favor and took a few calls. Since we gapped up, I ditched those and am sitting on the puts still.

I see some structure developing that I originally only briefly floated in the Discord over the weekend, but it’s looking perhaps a little more possible (but I still am not entirely sure).

We may be in a B-Wave triangle (of the pink degree). If so, we may still have lower to go for a trend line strike, followed by another rally back to the 4000 area. I am not sure about this, as there is also a falling broadening pattern perhaps developing in there as well:

ES

But, if we do head down to the lower trend line, we will be re-entering “technical” bear market territory, and that may induce some algo-generated supply, and it’s possible that we then rally again. Not sure. But, if we do fall there, I will then dump the puts I have, the other leg of a de-facto strangle. And at that point I will try to reassess the situation.


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