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

Tuesday | September 15, 2020

Hello Eizell.

YESTERDAY'S CLOSING PRICES

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DAYS UNTIL ELECTION = 48
Days First Debates = 13

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YESTERDAY: September 14

SPX 3383.54 +42.57 (1.27%)

The media was stating the market jumped because of renewed hope of a corona vaccine. This is getting older than the roller coaster ride we saw with the China tariff war. One day up, one day down, one day up....

The bounce from the open yesterday had as much to do with the fast drop leading up to Monday as it did with economics numbers that were not released yesterday, or any potential vaccine. The fact is that AAPL and TSLA had been falling like rocks since their split, and the market has fallen with them. Yesterday, AAPL and TSLA bounced and the market went higher.

The SPX and other major indexes jumped higher and ran until the SPX got to the magic 3400 number we see more often than Antifa's “peaceful protests” of burning down buildings and maiming people. Thank God it is a 1st amendment right, and not felony arson or battery.

Content, the markets sat near 3400 deciding if it wanted to go above or below, and then it slowly drifted lower like a 3-day old party balloon.

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TODAY: September 15

TRIPLE WITCHING WEEK

TODAY – 3400 test again.

The markets really lacked any excitement given the huge net changes, but that is fine. Was this the resumption of the crazy bull market we have seen? I kind of doubt we will see the 7, 8 and 9 days in a row of record new highs we saw weeks ago. If for no other reason, the election coming up should retard enthusiasm, and start some caution.

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
(+4.73% so far)

POT Logo

It was a slow day despite the large move. We set out goals, and we accomplished our goals. Friday we got long deltas via a Risk Reversal, and we hedged it at the highs. We then proceeded to purchase a $10 put spread at the same time. This was easy to fill if sitting there for 20-30 minutes. After that, I sent an order to spread it off and as the market fell, it was hedged.

For the second day in a row we added another RR for free.

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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.

Capri Sun and Dr. Pepper seem to be the secret to avoiding Corona in a Level 4, bio hazard lockdown society. It just awful when they run out of duct tape to cover the fanny exit.

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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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