It’s a somber session as we remember our fellow Americans who lost their lives 19 years ago.
Stocks remain volatile on this shortened trading week, but we’re starting to see buyers hold these levels.
Next week is September options expiration, which we typically see stocks move higher into Friday’s expiration.
So, if stocks can hold levels today, it’s likely we rally next week.
Now, the fear gauge for the S&P 500, known as the CBOE Market Volatility Index (VIX) is at 27. As we’ve seen, be prepared for a lot more dips ‘n rips that will create a lot of fast profit opportunities.
One of the keys to consistent trading gains is our reaction to the quick sell-offs like we just experienced.
Almost anyone can make money on the way UP.
But it’s about being able to weather the storm on the way down… while staying opportunistic.
That has been the most important lesson I learned on the trading floor.
When in doubt, just put your hands in your pocket.
Making money is fun!
It’s why we do this, but how we earn the right to do that is where the challenge lays.
That’s why I make such a big deal out of managing these little down-cycles in the markets.
I’ve been there, I know the feeling.
The best medicine is to stick to the system, and we’ll start stacking more wins here shortly.
On Tuesday, we added our newest position:
Buy-To-Open the Melco Resorts & Entertainment (NASDAQ: MLCO) Oct. 16, 2020, $20 call (MLCO201016C00020000) up to $0.80 per contract or better, for the day.
Right now, our open positions are:
- Nordic Amer Tankers (NYSE: NAT) Oct. 16, 2020, $5 call (NAT201016C00005000)
- ANGI Homeservices Inc. (NASDAQ: ANGI) Sept. 18, 2020, $15 call (ANGI200918C00015000)
- Energy Transfer LP (NYSE: ET) Sept. 18, 2020, $6.50 call (ET200918C00006500)
- Melco Resorts & Entertainment (NASDAQ: MLCO) Oct. 16, 2020, $20 call (MLCO201016C00020000)
Now we wait and let the market come to us.
And I’ll be keeping you updated every step of the way.
I’m looking forward to answering your most pressing questions this Wednesday.
If you want yours included, send it now to [email protected]
Have a great weekend, and I’ll have a new trade for you on Monday.
To your wealth, freedom, and options!
Joshua M. Belanger
P.S. In just a few hours, I’ll become a married man.
Nicole and I are so excited to tie the knot in front of our family and friends after being together for nine years.
I’ll be frank, we had a lot more uncertainty and obstacles due to the virus.
The process of getting here wasn’t enjoyable.
In fact, at times we weren’t sure if it was going to happen...
But we were steadfast and now the big day is upon us.
My point is that trading is a lot like life.
Sometimes the process to the outcome isn’t ideal, but without the bitter, the sweet isn’t as sweet!
Now, I pray that it doesn’t rain.