Tackle Today: Behold, the Thanksgiving Lull
November 22, 2022
«Stocks have fallen asleep. Embrace Cash Flow.»
Hopes of the Thanksgiving holiday bringing renewed strength to equities are slowly being strangled. It’s not that stocks are weak, mind you. They’re just not strong. Indeed, the S&P 500 seems to have slipped into a Turkey coma. Trading ranges are being compressed, and neither bull nor bear is willing to give ground.
Beneath, the 9-EMA is rising as support and has thus far halted two breakdown attempts. Above, the psychologically significant $4,000 ceiling ($400 on SPY) continues to rebuff advances.
During such a stalemate, one group can declare victory: Cash Flow Traders. Those wielding covered calls, naked puts, credit spreads, condors, and the like have been only too happy to watch the market’s uninspiring drift. It allows Theta to work its magic and deliver daily profits.
Video Of The Day: Jedi Options – Understanding Cash Flow and Theta in Options Trading
Coach Tyler teaches the basics of Cash Flow and Theta in options trading in this Jedi Options.
Chart of the Day: S&P 500 ($SPY)
The narrowing range is creating a bull pennant.
Tales of a Technician
Which Time Frame Should You Sell with Naked Puts?
Here’s what you need to know about the tradeoffs between selling short-term vs. long-term options. This will help you select the optimal time frame for strategies like naked puts, bull puts, and bear calls.
Today’s line up
Traders Lounge 11 AM EST
Join the coaches in this live lounge, ask questions, discuss ideas or just sit back and listen to veteran traders discuss market conditions.
The Coaches Show 8:30 PM EST
This is our weekly MasterMind group. Join the coaches tonight, 8:30 PM EST to discuss the markets and help you prepare for the week.
Halftime Report 12:30 PM EST
The Halftime Report starts at 12:30 EST and covers what news is driving the market, chart analysis from the movers and shakers of the day, and fun in a way that only Matt and Tim can deliver.
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