August 17, 2017

Options Strategy Trade

I placed a trade in the High-Probability, Mean-Reversion strategy yesterday. The trade is slightly underwater, which is obviously not the ideal situation, but I remain pleased with the risk/reward of the trade.

Three out of the four major indices are currently in a short-term overbought state. The major indices have hit an area of strong overhead resistance. There remains an unclosed gap from Monday and we are entering the weakest performing month of the year.  All of the aforementioned information lead to my opinion that the market is due for a short-term correction.