Lessons From the Futures Pits
Spend time with a broker or pit trader from the era when all trades were executed by brokers in trading pits at exchanges and you will learn about open outcry and the information it provides. Pits were created to facilitate trade. To an untrained eye a trading pit is a ring filled with angry, aggressive people wearing badges on various colored jackets. But for a seasoned observer a trading pit reveals incredible amounts of information not available on screens or trading platforms. Professional traders monitor order flow. They use a combination of market-generated information (technicals) and fundamentals (supply/demand or earnings) to define and refine strategies.
Lack of Confidence
Interesting Week Ahead
Volatility of Volatility
Psychology Is Key in Options Trading
You heard it here first: Psychology is key in options trading. Actually, you probably didn’t hear it hear first, but I bet when you did you didn’t believe it right away. To be honest, neither did I. When I started out as a retail trader, I had no idea how important psychology is to successful option trading. And even though I quickly learned this lesson, it took me several years to get a handle on it.
Help on Trades
How to Identify Trend Exhaustion
Information from the trading pit is no longer available because most trades are executed electronically. However, the lessons I learned from dealing with professionals and reading order flow still resonate. Be sure to answer all the questions on this list before entering any trade to think like a pro.
Sell the Rumor, Buy the News
AAPL’s AI Plan
Apple just made a strategic AI move that’s lifting its stock. The company is integrating generative AI into iPhones, but with a twist—Alibaba will power AI for Chinese users, while OpenAI handles the rest of the world. This decision helps Apple stay in Beijing’s good graces while ensuring smooth sales.
From a technical perspective, if AAPL holds above the 21-day moving average, we could see more upside in the short term. Fundamentals are aligning with price action—let’s see if momentum follows through.
Stocks Following NVDA Again?
The S&P 500 climbed 0.7% today, and Nvidia played a huge role, gaining nearly 3%. But the big question now: Can it break the 50-day moving average, or will it retrace below the 21-day?
Are Bull Calls and Bull Puts the Same?
Information from the trading pit is no longer available because most trades are executed electronically. However, the lessons I learned from dealing with professionals and reading order flow still resonate. Be sure to answer all the questions on this list before entering any trade to think like a pro.
Seek the Answers the Pros Do
Information from the trading pit is no longer available because most trades are executed electronically. However, the lessons I learned from dealing with professionals and reading order flow still resonate. Be sure to answer all the questions on this list before entering any trade to think like a pro.
Holding Yourself Accountable This Year
Who likes to do chores? If you are like me, there are definitely other things I would rather do. That said, when you have completed your chores, there is a sense of accomplishment. Whether it is cleaning your closet or basement or organizing your budget, the new year is a good time to get things in order. But what about your option trading? Have you thought about taking an inventory of your trading in 2024 as one of your chores? If not, you probably should put it on the list.
How to Use Velocity Indicators
Given the recent jump in volatility for interest rates, equity and energy markets, I figured it would be appropriate to introduce a few of my preferred velocity indicators.
IV Rises as Earnings Approach
As a trader and teacher, my tangible tool is a chart. Math is required to calculate my preferred market indicators, and the graphs I favor illustrate psychological and sociological behavior. As for the spiritual part, it is the euphoric feeling a trader gets when all the hard work and analysis pays off as a lucrative trade that involves minimal risk.
Big News!
🎯 Wrapping up the first week of 2025, and the markets are off to an intriguing start. While this week saw some ups and downs, today’s 1.2% bump in the S&P 500 closed things on a positive note.
Next week promises to bring even more action, with:
Fed speakers and FOMC minutes
JOLTS job data
ADP employment changes
Non-farm payrolls and unemployment reports
In other exciting news, my daily market insights are moving to Substack! Join me at wealthbuildingwithoptions.substack.com for exclusive content starting next week.
Stay informed, stay strategic, and trade smart!
#MarketInsights #OptionsTrading #WealthBuilding #FinancialFreedom
PLTR broken wing butterfly
🎉 Welcome to 2025! Start the new trading year with a fresh strategy. In this video, I share insights from a coaching session where we turned a put credit spread on Palantir into a broken wing butterfly trade. Why? Lower risk, better potential outcomes, and smart risk management.
You’ll learn:
✔️ Why it’s crucial to explore multiple ways to trade
✔️ How to stay disciplined with alerts and logging trades
✔️ Tips for refining your strategies throughout the year
Let’s make 2025 your best trading year yet.
#TradeSmart #OptionsTrading #WealthBuilding #2025Goals
Tools of a Trader
As a trader and teacher, my tangible tool is a chart. Math is required to calculate my preferred market indicators, and the graphs I favor illustrate psychological and sociological behavior. As for the spiritual part, it is the euphoric feeling a trader gets when all the hard work and analysis pays off as a lucrative trade that involves minimal risk.
It’s on my calendar
Happy New Year’s Eve! The market has been wild this year, dipping below the 50-day MA. Might we see a sideways trend? 🧐 Celebrate by checking your account’s growth and strategy performance. Also, don’t forget to calendar FOMC meetings for next year! #NewYearsEve #MarketWatch #TradingTips #StrategyAnalysis
RCL Put Roll
Rolling cash-secured puts? It’s not just about assignment—it’s about strategy! 💡
I recently rolled $RCL puts, lowering my strike and snagging extra premium. Small moves, big impact. 📈
Full write-up: wealthbuildingwithoptions.substack.com.
#OptionsTrading #InvestSmart #CashSecuredPuts #WealthBuilding
New Year’s Day or Groundhog Day?
🎉 Make 2025 your year for trading and investing! Take a moment to set meaningful goals this weekend. Write them down, plan for success, and break free from the Groundhog Day rut.
Here’s to a smarter trading year ahead! 📝💡
#NewYearGoals #TradingTips #InvestSmart #FinancialGrowth
