Morning Commentary Tuesday Feb 9,2010

Futures are up somewhat pre-market as there are rumors that the ECB will come up with a way to help Greece with its debt problems.  This may end up being a model for a few of the other smaller economies that are having problems.  The financial problems have been a serious weight on the market place.  This would also cause IV’s to fall and could spark a small rally.  Traders should be nimble as the market has not had much breath lately (volume).  When volume is light rallies can quickly become sell offs and vice-versa like we saw on Friday and Monday.  Thus, even with IV’s falling non-directional butterflies may have a tough go as underlying volatility will likely continue to be high.  I am currently looking at possibly a mid range condor that will get me short a decent amount of vega yet give me room against underlying market volatility.