Tackle Today: Tired of the Muddy Market? Embrace cash flow strategies
November 9, 2022
«Directional traders have no such luck.»
Traders,
Since last week’s Fed meeting, the intraday volatility has been wicked. Bulls have done a valiant job fighting back, but the path higher from the Nov 3rd higher pivot low has been choppy. This morning’s down gap following election day is the latest sign of messy movement.
How you fare in a muddy market likely depends on your trading style. Cash Flow traders wielding high probability, positive theta trades can do well. Their naked puts, bear calls, condors, and the like do just fine during indecision.
Directional traders have no such luck. They wield lower probability weapons that require follow-through to flourish. Choppy, sideways markets yield frustration as time decay saps the value of their positions.
If you started your trading adventure as a directional swing trader and find these muddy markets maddening, consider this your nudge to explore the world of cash flow by embracing strategies like naked puts and credit spreads.
Video Of The Day: Queen’s Court – $SQ Vertical Spread Analysis
On today’s Queen’s Court, coaches Emily and Matt analyze a Vertical Spread on $SQ (Block Inc). A vertical spread involves the simultaneous buying and selling of options of the same type and expiry, but at different strike prices.
Chart of the Day: S&P 500 ($SPY)
The past ten days of trading in SPY has been extremely choppy.
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 Replay
If you missed last night’s episode where Coach Tyler Craig discussed Manipulating Delta or would like to watch it again, check it out here.
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.
Trade Masters 7:00 PM EST
Every Wednesday at 7 PM EST join us on the Trade Masters where two Coaches go head-to-head to see who can find the best trading setup.
Trading Justice 501: Dot-Com Bubble Part 2
In this episode of the Trading Justice Podcast, Mark and Matt continue their discussion in Part 2 of their journey back through history with the Dot-Com crisis.
In this episode, they examine the years 2001-2003 which included a Fed Pivot, earnings deterioration, the horrific events of September 11th, Enron, and numerous other storylines. Mark and Matt discuss the market events in the year 2001-2003 and draw what parallels they can to this time period.
Listen to this episode in the player below.
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