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

Tuesday | September 22, 2020

Hello Eizell.

YESTERDAY'S CLOSING PRICES

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DAYS UNTIL ELECTION = 41
Days First Debates = 7

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YESTERDAY: September 21

SPX 3281.06 -38.41

Fun times! Nothing like a little fear of ANOTHER impeachment and ANOTHER round of covid to spook the markets. The first time for each was so fun and productive (not to mention a joke) that we will tell the joke again.

The market opened down about -$40 and kept falling until the SPX was down -90. This was accompanied by AAPL being as low as $103. Part of the joke was that for the last couple of weeks, AAPL has been leading the markets lower, and yesterday, AAPL was helping pull the market up. Shortly after the open, AAPL hit its lows and bounced. Though the markets were at their lows with the Dow down over -900 and the SPX down -90, AAPL was only down -$1.50 and inching higher.

This curious little anomaly with AAPL was noticed in the POT class where we got long a wide AAPL call spread. By the end of the day, AAPL was higher by over $3 despite the Dow closing down -509 points. As it is always fun, the SPX bounced near the closing bell to settle down only -38 points.

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TODAY: September 22

TRIPLE WITCHING WEEK

TODAY Higher?

We had 2 weeks of selling which took the markets from +10% on the year to touching the unchanged line yesterday. Interesting. Why not bounce? Is another fake impeachment going to matter with 41 days until the election? Yesterday's selling, though perhaps not the bottom, was a bit overdone given the news.

I wish I took my predictions more seriously (see my year prediction below). Can you imagine if I sold an ATM straddle on the open in January of 2020 only to come back and close it yesterday when once again the markets was in the same spot? That would have been a nice profit. Then again....it would have been painful when down -38% back in April.

NEXT BIG DAYS:

Sept 29 – Presidential debate #1
October 15 – Presidential debate #2
October 22 – Presidential debate #3

I am still standing by my prediction (made December 31, 2019) that we will be positive for the year and making new all-time highs by the end of the year. I maintained this stance even when the SPX was down -36% for the year (this has been here since January 1).

S&P 500 Price Limits

From 8:30 a.m. to 2:25 p.m. CST, there are successive price limits corresponding to 7%, 13%, and 20% declines below the previous trading day’s reference price.

From 2:25 p.m. until the 3:00 p.m. CST close of the cash equity market, only the 20% price limit will be applicable.

2020 ONE-YEAR PREDICTION:
Average year with lots of intermittent volatility
(+1.47% so far)

POT Logo


Fun times after the first 2 hours of making sure anyone with an assignment issue was cleaned up. We are now back to work.


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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.

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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.

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