image
Stratagem
Facebook Twitter YouTube

Having trouble viewing this email? Click here

Prepared by StratagemTRADE.com and Scott
Writing under the nom de plume of J.L. LORD

Friday | March 6, 2020

Hello Friend.

YESTERDAY'S CLOSING PRICES

image
image
image
image

YESTERDAY: March 5

OPEN

The SPX opened down 70 points. Why? In all honesty, I have no idea. There were more reports about infections of the coronavirus, and the death toll in America is at 11 now.

It is a very sad thing for the families of those who perished, but keeping things in perspective, we have more gang shootings in Chicago in a weekend.

Every day, well over 300,000 people drive drunk, and over 10,000 die from drunk driving fatalities. Up to 60,000 people a year in America die from the flu.

AFTER OPEN

After the open, the market bounced a little on rumors that Elizabeth Warren was dropping out of the presidential race, leaving the field down to Joe Biden and Bernie Sanders. People speculated that she would throw her support towards Biden, but she remained uncommitted.

One can probably speculate accurately that she will offer her support to whichever candidate promises her the most.

With Warren not throwing her support behind Biden, and the media trickling out endless updates on the coronavirus, the market got heavy. The media was also careful to keep pointing out the economic effects of the panic they create with the reduction of travel and lodging.

Eventually the market has to succumb to a deluge, but bad news and the SPX slugged to give back almost all of yesterday's gains.

CLOSE

Right before the close, the SPX tested support at 3,000 before bouncing to close at 3023.94.

SURPRISES

SPX closed down 3.39%.

Dow closed down 3.58%.

AAPL closed down 9.82 at 292.92 (-3.24%).

Dow Transports entered BEAR MARKET (down 20% or more) territory.

image

TODAY: March 6

LOWER (hopefully):

Immediately after the close, the market started to pull back slightly. As the night wore on, the SPX was down -25 points at midnight (Chicago). Because of the way the futures closed 15 minutes after cash, a -25 in the futures means the SPX cash would be down about -35 if it were open.

You’re braver than you believe, stronger than you seem and smarter than you think”.
—Christopher Robin, Winnie the Pooh

2020 ONE-YEAR PREDICTION:
Average year with lots of intermittent volatility
(-3.12% so far)

POT Logo

A VERY VERY GOOD CLASS. We discussed high volatility trading. We talked about what happens to option premium, vertical spreads, the standard deviation bands, etc. as the market goes from a low to high volatility situation. We further discussed how skew and high volatility are favorable for some strategies such as the butterfly and condors – especially when compared to a vertical spread. We also discussed Example #51 (the 5 parts) and the reasoning behind adjustments and lopsided contract sizes

Overall it was very informative.

image
image

DISCUSSION BOARD

Up and Running for POT students (so far).

Really quickly...

To help in your quest for the best possible options trading outcomes, we would like to know what level of options trading knowledge and skills you currently have. Please click the button below to indicate what level of trader you are? Please skip if you already responded. Thank you for participating.

P.O.T. Schedule to come.

LAUGH OF THE DAY

Trading is a tough job on a stomach void of coffee and humor.
You provide the coffee and we will take care of the rest.

image

Disclaimer

For education purposes ONLY. Please read the disclaimer below. We do not care if you agree or disagree with it—that is the rule. ​​​Stratagem Trading (Stratagem: “StratagemTrade.com,” “Stratagem”), and any of its possible affiliates, respective independent contractors, employees, officers, or agents are not acting as licensed financial advisers, registered broker-dealers,tax advisers, etc. (although some individuals may or may not hold a license). Furthermore, they do not provide financial advice, make recommendations, or conduct business by transacting trades. Stratagem Trading adamantly states that nothing in this communication constitutes a solicitation, promotion, endorsement, offer or recommendation to buy or sell any investment, mutual fund, debt instrument, commodity, derivative product or security as described herein.

Stratagem does NOT offer auto-trades. Case studies being provided are historical examples illustrating how a particular commodity, equity, index and/or option strategy could have been implemented. Stratagem Trading is not providing students with real time trading opportunities, nor giving advice. We strongly recommend that you consult with a licensed financial professional for all your financial matters.

COPYRIGHT (c) Material 2019 | Stratagem Trading | StratagemTRADE.com

here.

If you wish to no longer receive our newsletter, you can unsubscribe here.