Facebook Twitter YouTube

Having trouble viewing this email? Click here

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

Monday | June 22, 2020

Hello Eizell.




Friday started out with a huge move higher. It was a “quadruple-witching” day, meaning index futures, index options, stock options and single stock futures are expire simultaneously.

In POT class, we illustrated a special Stratagem called the JELLY ROLL to take advantage of these situations. The wonderful thing about the Jelly Roll is that we were able to sell the cash at the settlement prices, which was almost $6 higher than the SPX highs for the day. (See more about this in the POT section below).

After the open, the market sold off. It appears that much of the open was panic buying to protect gamma, shorts panicking and news related buying. The SPX opened $40 higher, and by 11am Chicago time (2.50 hours later), had given back all the gains.



After falling through the “unchanged line”, the market kept falling. Companies that just last week stated that they were reopening retracted.

AAPL was especially frustrating as they had two issues. First, the company that “cares about your privacy” had secretly installed a coronavirus tracking app. Second, AAPL announced that they were going to close 11 stores in areas with a high rate of coronavirus.

The fear of shutting down again sent the SPX below 3100, with a low net change of -32.

Since this was an important expiration, the SPX and stocks settled down on the close with the SPX closing almost at 3100. AAPL, which had been down over -$6 (at the lows), finally bounced to close down just -$2.01, but just under $350.


TODAY: June 22

TODAY – Lower, but...

LONG TERM – NEW ALL TIME HIGHS (possibly), and then a NASTY trade war sell-off

Friday after cash closed, we saw the last 15 minutes of futures trading quote until the LAST POSSIBLE MOMENT. In the last couple of minutes, the E-minis fell dramatically. They were looking as if they would close at 3099, and then fell to 3060.

Recall that futures settled at 3059.50. Even if the futures open higher, we will see SPX cash and the DOW lower because of the need for the indexes to get back into alignment.

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 -35% for the year.

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.

Average year with lots of intermittent volatility
(-4.12% so far)

POT Logo

We had a special bonus class on the JELLY ROLL which proved to show the power or this trade. How crazy was the trade? You will laugh.

The SPX cash high of the day was 3155.53. Yet the SETTTLMENT price of the SPX was 3,161.26.

The cash settled 5.73 higher than the high of the day. The cool thing about the Jelly Roll is the position sells the OPENING PRINT of the day (3161.26), and then we buy it back any place we want later. The WORST we could have bought it back would have been 3155.53, but we actually bought it back over $16 lower. How cool is this?



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.

We all know the illustrious AOC who is so intelligent that she went from bartender, to expert on economics and the environment solutions (like building a train from Maui to California) simply by moving from NY to DC.

She is running against a very capable and intelligent woman named Michelle Caruso-Cabrera (MCC). AOC agreed to have a debate with MCC, but then she (AOC) kicked out TV and news reporters, refusing the media to report on it.

Who can forget AOC's best insights:

  1. “When this country stated, we were not a capitalist nation”
  2. “Owning guns is NOT a right...if it were a right, it would be in the constitution.
  3. “Everyone knows the world is going to end in 12 years”


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