June 23, 2017

Sideways Trading Persists…But for How Long?

Today marked the 14th straight day of range-bound trading. For those that favor directional trading it’s been exhausting. For those of us who sell options and favor time decay over direction, well, it’s been wonderful. After roughly two and a half months of relentless rallying the market has finally settled down and looks to normalize.

The recent price action shouldn’t be too much of a surprise. The past three years have allowed the bulls to celebrate early and often, but unfortunately the party typically ends shortly after the first quarter ends. An intermediate-term reprieve kicks in and the bears finally are allowed their time to shine. And while the party might not last long, the decline is usually short and somewhat significant.

A decline will bode well for all of my current positions and should allow for  some nice opportunities to add a few bull put spreads. Of course, first we need to see a break of the current trading range.

Note to subscribers: I will be making a few major changes to the Theta and High-Probability Strategies. Moreover, I will be adding another strategy to the mix. I will be sending out more info over the coming days. Stay tuned!!!