10 Minute Read

Tales of a Technician: Trump, The Condor Killer

November 28, 2016

By | 8 Comments

condor

Thanksgiving was bittersweet in the Craig clan. While feasting on one bird we were mourning the passage of another. Our beloved December Condor was laid to rest on Tuesday, felled with loving care by yours truly (and my trusty shotgun).

Why the grisly death you ask? ‘Twas his erratic behavior following Trump’s successful White House bid. Turns out liberals and crybabies weren’t the only ones who turned wacky following Donald’s epic win. My wide-winged bird went batty, too. I tried to calm him with play-doh and tissues, but his grief was inconsolable. His wild flappings started wrecking my portfolio. The daily losses took their toll and once my short call strike was reached I grabbed the shotgun.

I assure you I wasn’t the only one putting his pet down last week. The 16% moon shot in the Russell 2000 Index was simply too much directional action for an Iron Condor to roll with. Our wide-winged, feathered friends simply aren’t equipped to survive such one-sided craziness. Which brings me to the point of today’s tale.

How do we respond to losing in our December Iron Condor? If you, like me, have a carefully crafted condor trading system it’s important to know how to deal with the occasional bird gone mad. So how have I adjusted my tactics moving forward?

I HAVEN’T.

What, you think one losing trade merits rejiggering the whole system? Nonsense. The question worth considering is whether my edge just died alongside the December condor. Do I now think the markets won’t be rangebound most months? Do I now think options aren’t perpetually overpriced? Do I think Trump not only upended the dreams of die-hard lefties, but condor sellers the land over? I assure you the answer to all three questions is a trio of emphatic NO’s.

Abandoning my condor system now would be like the long-term stock investor who jumps ship on his investment in the midst of a bear market because he thinks stock investing has stopped working. To that poor fellow and any other successful condor system possessing traders, I say the following: Don’t be dumb, don’t be short-sighted. If you judge the success of a system based on one outcome you’re woefully naive. Sorry, had to be said.

Rare events (like the ridiculous 16% RUT rip over the past three weeks) happen. And when they do, condors die. So mourn for a day, shake it off, and move on with the system already. Profits await.

And if you don’t have a condor trading system, just wait. We have one heck of a video series being cooked up in the Tackle Trading kitchen as I type. As the principle chef, I promise you she’s sure to satisfy. When the table is set and all the fixings finalized I’ll let you know.


Tackle Trading: Financial Freedom is a Journey. Sign up now for a 15-day free trial.

Financial freedom is a journey

The Tales of a Technician series is brought to you by Tackle Trading.

Sign up now and gain unfettered access to all of the quality content and powerful Scouting Reports that our Pro Members enjoy for 15-days absolutely free with no strings attached and let us show you what your trading has been missing.

Sign up now for a 15-DAY FREE TRIAL #


Legal Disclaimer

Tackle Trading LLC (“Tackle Trading”) is providing this website and any related materials, including newsletters, blog posts, videos, social media postings and any other communications (collectively, the “Materials”) on an “as-is” basis. This means that although Tackle Trading strives to make the information accurate, thorough and current, neither Tackle Trading nor the author(s) of the Materials or the moderators guarantee or warrant the Materials or accept liability for any damage, loss or expense arising from the use of the Materials, whether based in tort, contract, or otherwise. Tackle Trading is providing the Materials for educational purposes only. We are not providing legal, accounting, or financial advisory services, and this is not a solicitation or recommendation to buy or sell any stocks, options, or other financial instruments or investments. Examples that address specific assets, stocks, options or other financial instrument transactions are for illustrative purposes only and are not intended to represent specific trades or transactions that we have conducted. In fact, for the purpose of illustration, we may use examples that are different from or contrary to transactions we have conducted or positions we hold. Furthermore, this website and any information or training herein are not intended as a solicitation for any future relationship, business or otherwise, between the users and the moderators. No express or implied warranties are being made with respect to these services and products. By using the Materials, each user agrees to indemnify and hold Tackle Trading harmless from all losses, expenses and costs, including reasonable attorneys’ fees, arising out of or resulting from user’s use of the Materials. In no event shall Tackle Trading or the author(s) or moderators be liable for any direct, special, consequential or incidental damages arising out of or related to the Materials. If this limitation on damages is not enforceable in some states, the total amount of Tackle Trading’s liability to the user or others shall not exceed the amount paid by the user for such Materials.

All investing and trading in the securities market involve a high degree of risk. Any decisions to place trades in the financial markets, including trading in stocks, options or other financial instruments, is a personal decision that should only be made after conducting thorough independent research, including a personal risk and financial assessment, and prior consultation with the user’s investment, legal, tax, and accounting advisers, to determine whether such trading or investment is appropriate for that user.

8 Replies to “Tales of a Technician: Trump, The Condor Killer”

  1. Avatar ERICSIMMS says:

    Great article! Hatch a new clutch of condors from the eggs.

  2. KEITHGIUNTA KEITHGIUNTA says:

    My JAN one is still breathing. Thanks Tyler.

  3. Avatar AdiPuplampu says:

    great writing, even though i don’t yet comprehend the beauty of the condor

  4. Avatar Sundar says:

    Enjoyed this article, Tyler. Can’t wait to view your video series on the condor trading system.

  5. Avatar STEWGILGIS says:

    Misery loves company. I’m glad Trump won but my portfolio paid a price.

  6. Rani Bush Rani Bush says:

    Looking forward to the video series.

  7. Bill Trimborn Bill Trimborn says:

    I’m looking forward to watching the new condor video series!

  8. Avatar PETERIRUNGU says:

    Nice post coach Tyler. Also looking forward to the video.

Comments are closed.

Chart Modal

Tackle Trading