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
Look! It’s Santa Claus (Rally)
🎅📈 The Santa Claus Rally: Stocks have historically risen during the last 5 trading days of the year & the first 2 of the new year (~2/3 of the time).
Not guaranteed, but leaning long might give you an edge. Trade smart this season!
#SantaClausRally #MarketTrends #OptionsTrading #TradeSmart
Best beginner option strategy
New to options trading? Start simple: buying calls. 🚀 It’s beginner-friendly, easy to manage, and sets the stage for more advanced strategies like puts & spreads.
💡 Start small, practice, and trade smart!
#OptionsTrading #Investing101 #TradeSmart #FinancialGrowth
Ratio call writing
Ratio Call Writing Simplified
Own 100 shares.
Sell 2+ calls for higher premiums.
Beware: Naked calls = risk of losses if the stock soars.
Use only with high implied volatility + strong resistance!
Don’t Let Your Emotions Get in the Way
Trading isn’t just about entering positions—it’s about managing them effectively. As I often say: “Know what you will do no matter what happens before you enter a trade.”
For a bull call spread, consider profit targets, stop losses, and multiple exits to adapt to market moves. A solid plan minimizes emotional decision-making and sets you up for success. Preparation is key.
How option prices work
💡 How Are Option Prices Determined?
It’s a mix of math and market mechanics:
1️⃣ Models (like Black-Scholes) calculate value.
2️⃣ Market makers set bid/ask prices, buying below & selling above value for profit.
3️⃣ Buyers & sellers push prices with real trades.
Trade smart with this insight!
#Options #TradingTips #MarketMechanics
Inflation vs Gold
📊 Gold: A Reliable Inflation Hedge? Not Quite.
Over the last 50 years:
Inflation: Steady rise ($100 in 1975 = $590 today).
Gold: Up from $176/oz to $2,685/oz but with wild volatility.
Gold can surge during inflationary spikes but isn’t a consistent hedge—think volatile store of value, not “insurance.”
#GoldHedge #InvestSmart #Inflation
