What Are They Up To?
The fun thing about writing for Traders Reserve is that the co-owners, John and Dave, keep me on my toes. They often come up with ideas that no one else is talking about. And they are at it again.
I invite you to set aside 30 minutes on Thursday, November 17th at 4pm EST as they reveal big news about their 9th Annual Investor’s Blueprint Live conference. They won’t tell me the theme or anything. What are they up to? It’s top secret, so I’ll be joining to hear what they have up their sleeves.
Did you click on the link? Did you register? I’ll wait…
The PPI numbers came out yesterday and came in less than expected. The Producer Price Index annual increase went from 8.5% down to 8%. The consensus was 8.3%, so the market took off pre-market with the notion that various inflation gauges are showing weaknesses.
Now, I think we will see a continuation of a bear rally here. There is a similarity in the SPY chart comparing the July/August time to now.
Around #1, we crossed above the 50-day moving average. Then #2 shows we came back and retested the cross above the 50-day moving average. Then at #3, the market rose flattened before the next leg up before retreating. Will we do the same thing here?
Last time it rose almost 4% after #3 in August. If that happens again from our current levels, we could see SPY rise up to around $413. Interesting since yesterday I said I thought we’d come up to about $415 before we hit resistance.
There are times when I like to trade two symbols that are moving opposite each other. Those who know me, know that I trade IWM quite often. The chart on the left is IWM, and the chart on the right is USO, the United States Oil Fund. If you compare the two charts, as IWM goes down, USO heads up. That doesn’t always work but has been that way for the last few months.
One can act as a hedge against the other. I still like trading them as Iron Condors (the combination of a bear call spread and a bull put spread). If both symbols stay flat, we can win on both trades. If one takes off and the other sinks, it can reduce our portfolio loss.
Here are two iron condor examples of trades you can place.
BTO = buy to open
STO = sell to open
Expiration: 20 JAN 23
STO 210 call
BTO 220 call
STO 165 put
BTO 147 put
Margin Requirement: $1600
Expiration: 20 JAN 23
STO 92 call
BTO 105 call
STO 61 put
BTO 53 put
Margin Required: $1200
Look to close out each of the positions at a 50% profit (or more). Stop loss on each position would be when the underlying trades above or below the strikes that you sold.
What do you think? Is the risk worth the reward on each of these?
Oh, did you sign up for the IBL announcement? Get a Seat Here and Don’t Miss Out
If you have any questions, comments, or anything we can help with, reach us at any time.
Email: [email protected]
Phone: (866) 257-3008
Editor, Filthy Rich Dirt Poor
Coach, Options Testing Lab
February 7th, 2023Is The Stock Market Cycle Pointing To A New Bull Market Already?Are we in another bear market rally or the start of something new? That’s what everyone wants to know, especially as we
February 6th, 2023Job Creation Shocks The MarketIf we’re heading into a recession, how were we met with better-than-expected job growth numbers last week? Unemployment dropped, despite the headlines of tech companies planning to lay off
February 3rd, 2023Job Cuts And Stock Buybacks Keys To Success In 2023 The thing I’ve learned from this earnings season is that a company can have consecutive quarterly drops in revenue and provide a lower
February 2nd, 2023Fed Raises Rates But Bulls Are Still In ControlOk, bulls. You win. I will start lifting my bearish stance on the market. Despite the final 10-minute market sell-off and a Dow that finished
February 1st, 2023What Past Fed Announcements Tell Us The Market Will Do TodayWatch out - this article is going to have some math.Here we are once again on Fed Announcement day. Most of the folks
January 31st, 2022The Hidden Profits Of 2023There is still one more trading day left in January, but if the adage “as the S&P 500 goes in January, so goes the year” holds true, the markets
January 30th, 2022 The Fed Goes Up Against Earnings This Week We are in peak earnings season with some heavy hitters like Pfizer (PFE), Snap (SNAP), Meta Platforms (META), Amazon (AMZN), Alphabet (GOOGL), and Apple
January 17th, 2022Smoother Sailing in 2023 Nothing has changed since the end of 2022, yet traders have already decided that this year won’t be as bad as the last. Bulls have been piling into stocks
January 12, 2023 The Rise Of Bing Over Google - That’s No Joke Before we talk about two tech giants getting ready to battle it out once again, let’s look at the overall market. The
January 9th, 2022 Why I Ignore Most Of The News It’s easy to get caught up in the financial headlines. I’ve certainly done it. Last week shows why I ignore most day-to-day stories. I know
267 Kentlands Blvd #225
Gaithersburg, MD 20878
P. (866) 257-3008
(Monday-Friday 9:00 AM-5:00 PM EST)
Publisher of actionable and proven strategies and tactics to help investors build wealth and reach seven-figure portfolios.
Get notified about new articles, special events, training, and much more
Leave your info below to get more options and trading ideas to your inbox
Yes, send me news to my inbox.