Iran was the excuse to take a break

The market has been very hot with lots of call positioning that was continuously rolled higher spurring a large rally. 325 (3250 SPX) has been a ceiling for some time and we've been unable to breach that level. The Iran news adds uncertainty which increases implied volatility and hedging. This makes puts more influential. Coupled with a "tired" market I think we may see a ~3-5% correction. 315 is our zero gamma level and where we would look to take profits. 325 is where we cover our short.

Trade closed: stop reached:

After the amazing dip buying that occurred last night this idea is closing as we think avoidance of war will drop volatility enough to drive prices higher.