Facebook Twitter YouTube

Having trouble viewing this email? Click here

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

Friday | February 14, 2020

Hello Mayumi.



YESTERDAY: February 13

Pre-Market and Open

Wednesday after the close, the market started to glide higher in the night trading session until 6pm (Chicago time). This is when a report came out that showed the more accurate number of coronavirus patients and deaths were, and this took the Minis down from +2 to -$14 in moments. The SPX closed up +24 the previous day on positive news about the virus, and the next day the SPX cash opened down almost -$19 points. Panic selling on the open made this the lows for the day.


Two hours after the open, the SPX made it all the way back to unchanged for the day, though the Dow was down about -60 points – mostly because AAPL was down -2 to -3 points all day. Though SPX cash did nudge to a high of the day of 3,385.09 (+5.64), most of the day the markets were quiet other than the open and close.


The last hour saw softness in the major indexes. The SPX closed down -5.51, the Dow closed down -128 and NASDAQ closed down -17.49. AAPL closed down -2.33 at 324.87.


TODAY: February 14


Unless another surprise comes out of China or Iran, we will move higher. I am still expecting action against Iran by the end of the year as they get very close to having a nuke. President Trump has sternly stated “Iran will never be allowed to get a nuclear weapon”.

Even with yesterday's bad news coming out of China about the coronavirus, the SPX only closed down minimally. Traders focused on the increased cases of virus with an attitude of “we kind of knew China was fudging the numbers, so nothing has changed”.

The virus has been in the news since January 23rd (ish) when the SPX was at 3,325. Yesterday, it closed at 3,374, about 49 points higher. Even with the new virus on people's “concern list”, the SPX is 10 option strikes higher.

Right now, bad news is no news, and no news is good news – for now.

Average year with lots of intermittent volatility
(+4.43% so far)

POT Logo

We started a LAYER SPREAD example that will prove to be a lot of fun. There were some questions after the close that I will address in the updates.



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



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.



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: “,” “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 |


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

Stratagem Trading 1000 W. 15th Street #243 Chicago, Illinois 60608 United States