Options Expiration Week Begins

April 17, 2006 · Print This Article

As I mentioned last week, the Monday Following Good Friday has a seasonally negative bias. Well, once again it looks as though that indicator held true and now the major indices are either back into oversold (SPY) territory or fast approaching (DIA and QQQQ). Another declining day would bring all three into oversold or possibly very oversold territory which could make for a nice short-term trade to the upside. I would prefer to see a decent decline over the next day or two before I attempt to establish any positions. I want to make sure each trade has a high probablity of success. Obviously not every trade will work (that is a ludicrous thought) but if we can increase our odds of success by patiently waiting for nice set-ups then we will manage to remain profitable over long-term. I cannot emphasize this enough. Patience, patience, patience.

Daily Articles of Interest