Newsletters
Trading Volume, Open Interest and Volatility
We look at these essential elements in the options world to determine whether to enter a position or wait. As traders of the SPDR ETF Trust, SPY, we monitor these indicators closely, sometimes even choosing to sit on our hands until the numbers return to a tradeable range. Remember: it’s better to not be in a […]
Are You Addicted to Trading?
Imagine sitting around in a group… “Hi, my name is… and I am addicted to options trading.” Unless you are a trader, you will never understand this addiction. Even worse, you may never see it as a problem. Trading comes with a prospect of high income, financial freedom and an exciting, frenetic pace of highs and […]
Call to Action in Uncertain Times
It is a little over six weeks into President Trump’s reign, and his geopolitical gambits have triggered uncertainty among investors. The mere talk of tariffs has ignited much fear in the market. Mind you, prices fluctuate wildly on his whims as “The Apprentice” reality show star is clearly now a star of reality itself. President […]
What to Do When the Market Tanks
It happens. An outlier event collapses the market. It could be something as innocuous as an economic report that, at other times, would hardly move the needle. But, for some reason, whether SPY tests at an all-time high or pushes up into a major resistance level, then a seemingly insignificant news item suddenly sends SPY southbound so fast that even […]
Inflation Numbers and Why January Reports Are Particularly Important
We talk a lot about inflation, the Federal Reserve’s response and how it relates to our preferred stock, SPDR S&P 500 ETF Trust, SPY. The Consumer Price Index (CPI), released monthly, is a widely used indicator to measure price changes for a basket of goods and services over time. There is no magic to this […]
Options 101: Terminology
For the many new traders in our camp, here is a brief primer on stock options. You will readily understand why we trade these incredible, lucrative instruments. Options are contracts that give the holder the right, but not the obligation, to trade the underlying stock for a certain price by a specific date. Most major stocks have […]
Super Bowl Effect on the Stock Market
The Super Bowl attracts millions of viewers as one of the most watched events of the year. Not just sports fans, but investors take a keen interest in determining the stock market’s direction by watching the famous “Super Bowl Indicator.” This nonscientific barometer of the stock market was introduced by sportswriter Leonard Koppett in 1978. […]
Trading Through Winter Weather
“At Least Nine Reported Dead in Brutal Cold as Historic Snow Falls in Once-in-a-Generation Storm in the South”, “Watch Snow on the Beach as Winter Storm Batters the Gulf Coast”, “Snow Covers Bourbon Street in New Orleans”… Wait, what? The Super Bowl is coming to New Orleans. They can’t possibly have snow there! Lol. Recent […]
Top 10 Things I Love About Day Trading SPY Options
As I write this, I am stranded in Frederick, Maryland, a small city of about 78,000 souls near the Washington Metropolitan Area. We’re not really “stranded”; we were just driving home from Florida and stopped about seven hours out, waiting for blizzard lake effect snow and cold conditions to clear back home in the Buffalo, […]
Fighting FOMO (Fear of Missing Out)
It’s ingrained in our psyche. We were raised to believe that the harder, longer hours we work, and the more time and effort we put into something, the more we benefit. The same holds true for investing: the more and longer time we remain invested, the more money we will make. This may work for […]
