Quantcast
Are You a Trader or Investor? [Why It’s Important]

Are You a Trader or Investor? [Why It’s Important]

Posted On May 13, 2022 4:07 pm
By:

In this jab-and-move market, the best way to trade is harnessing the pumped of premiums available through the increase in volatility

Fortunately, a disciplined approach and market action helped the Options360 service profit by 5.8% this week, pushing its performance to a 13.2% overall 2022 gain.

Trades that helped lead these gains include a bullish position in Advanced Micro Devices (AMD).  As mentioned, it’s now an iron condor. By selling the put spread yesterday and the call spread today — following the share’s 7% jump —  our risk is down just $70 while profit potential rose $540 per contract.  I like those numbers. 

Do not miss the next, big trade! Claim your one-month Options360 Trading Service trial (82% annual profits in 2021) for just $19

Invesco Nasdaq 100 (QQQ) is another main Options360 position taken. It’s a multistrike position with bullish and bearish spreads with a bullish bias.  However, it’s mainly focused on harnessing premium through the use of Monday, Wednesday and Friday expirations; a strategy I call the “triple play.”  Despite an initial and adverse reaction, the position’s risk is now down a mere $50 with profit potential at $455.  Again. I like those numbers.  

One of my colleagues on the publishing side (as you know traders can have too big an ego) recently emailed me asking if I “expected the market to keep down, or do I expect a turnaround?”  This follows a phone call I received from my landlord asking me what I thought of the market in general, and Amazon (AMZN). 

To my publishing colleague, I responded, “I think we get a bounce in the next few days.  But still, be down over the next few months. Nasty market.” 

Yes, I do answer all emails and host webinars for deeper dives. Get access to me and all my Options360 trades with a one-month trial for just $19

To my landlord (in her 70s with several properties), I said, “Don’t try to buy anything yet. I assume you’re already invested. And please, please, don’t raise my rent.”  We both had a good laugh over that.  I guess my rent’s going up now ;(. 

The point I’m trying to hammer across is that you must always differentiate between being an investor, which I consider to have a 3-20 year time frame), and being a trader, (which can range from a day to several months).  

Investors must take a 10,000-foot view, scale into positions over time, and keep their emotions in check. 

For us active traders, the time is now to get aggressive. Options360 service will continue jabbing-and-grabbing quick profits.  

During the past few months, Options360 did well staying in positive territory by dancing around a challenging market.  It’s time to take a more aggressive approach, cut off the ring and look powerful, if not knock out, punches. 

Things are about to get good. It’s clobberin’ time. 

[Last Chance] I’m ramping up my trade expectations to occur with greater frequency so that I can deliver even higher returns — get into Options360 service for the $19 sale price — before it’s too late!

About author

Steve Smith

Steve Smith have been involved in all facets of the investment industry in a variety of roles ranging from speculator, educator, manager and advisor. This has taken him from the trading floors of Chicago to hedge funds on Wall Street to the world online. From 1987 to 1996, he served as a market maker at the Chicago Board of Options Exchange (CBOE) and Chicago Board of Trade (CBOT). From 1997 to 2007, he was a Senior Columnist and Managing Editor for TheStreet.com, handling their Option Alert and Short Report newsletters. The Option Alert was awarded the MIN “best business newsletter” in 2006. From 2009 to 2013, Smith was a Senior Columnist and Managing Editor for Minyanville’s OptionSmith newsletter, as well as a Risk Manager Consultant for New Vernon Capital LLC. Smith acted as an advisor to build models and option strategies to reduce portfolio exposure and enhance returns for the four main funds. Since 2015, he has worked for Adam Mesh Trading Group. There, he has managed Options360 and Earning 360, been co-leader of Option Academy, and contributed to The Option Specialist website.