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.
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.”
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.