BY ANDREW GIOVINAZZI

August 30, 2023 

Yo Pit Crazies,

Check out the Areas of Trading Mastery you need to become a Pro Trader tonight at 7:00 ET.

We had fun at the Trading Desk yesterday T-Bond Yields cratered after the Consumer Confidence Index came out light. In this market, if rates go down, stocks launch. I already had a good day going thanks to all my SPY calls springing to life in OPMentoring and Weekly Profit Cycle. I told Mark we were going to 4500.

He was busy buying Mini SPX Index (Ticker: XSP) strangles to catch the wave and I bought some SPX 4500 calls expiring Aug29.

Here’s how I knew to buy some calls in SPX…

To Trade Like a Pro, Have an Opinion and an Edge

Having a good day helped but I did not want to get stopped out on my SPY calls around 11am. I still thought the market was going higher. With VIX at 15 this morning I assume the market will move close to 1% per day so a little lift could propel SPX to 4500. Positive rate news, as in rates going down, get the algos pumping up stocks.That should be enough edge with the calls cheap relative to the move.

So I bought 5 SPX Aug 29 4500 calls for .70 and by the end of class they were 1.15. I sold 3 to let the last 2 ride to the close since I could own them for .15. I used a .70 stop on balance and worked the stop to 1.50 where I eventually filled. Peak prices on the calls were $3.00, 4x!!!!!! but they went out worthless as SPX closed 4497.63.

The move was what I wanted and the move was what I took. I wanted $7 for my big 1000% win but ended up taking what the market gave me. After I set my stops, I never looked at the trade for the rest of the day.

All of this and more is part of our Pro Program. Take a look tonight at 7pm.

To your trading success,

AG