As a premium seller I couldn’t have scripted a better week for the $SPX. So much economic data that the market almost seems confused as to which way to go. September is probably one of my favorite months to write premium. However, October can be a different story (2009). Have a great weekend and enjoy [...]

What a difference a week makes. Last Friday (8/20) the $IWM had 18% of its components trading above the 4SMA while the $SPY had 15% and the $QQQQ had 25%. As of the close Friday (8/27) the Russell 200o shows 92%, S&P 500 came in with 88% and the Nasdaq placed with 83% of its [...]

Oftentimes traders tend to focus for long periods of time and thus they reach a level of attentional fatigue and the mind wanders. Trading mistakes are made when a buy to open should have been a sell to close and anger can set in. A simple Stroop Effect test provides insight into the cognitive effects [...]

August option expiry has come and gone and the $SPX made a lower low on the weekly chart. The daily chart shows the broader based S&P 500 finishing the week under all of it’s moving averages. Ugly week for the bulls and yet the bears didn’t take the ball and run with it either. The [...]

So far I’ve outlined some historical ranges and gone through some technical analysis on the $SPX in an attempt to show how I approach the market. In this post I delve into the option chains to see what’s being offered and where I can sell premium that aligns with my analysis. A few rules that [...]