Facebook Twitter YouTube

Having trouble viewing this email? Click here

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

Tuesday | May 26, 2020

Hello Eizell.





Most trading days prior to a long holiday weekend are either very dull, or they have a surprise sell-off lower in low liquidity environments. Friday was the former. The market fought to decide if it wanted to close above or below SPX 2,500, and only closed above it in the final moments of trading.

The primary excitement came from watching if AAPL was going to break above 320.


News came out after the close Friday that Moderna's Remdesivir drug was essentially useless in fighting the Coronavirus. We will see how hard the stock is hit. Keep in mind that Thursday, the stock was down 10% on fears it was going to be a dud, so the stock might not fall too hard.


TODAY: May 22

TODAY – Higher
MEDIUM TERM – Consolidation around 3,000
LONG TERM – NEW ALL TIME HIGHS (possibly), and then a NASTY trade war sell-off

All last week, I have been reminding the Practical Option Tactics (POT) students that the day after MEMORIAL DAY usually sees the market run considerably higher. There is NOTHNG more American than Memorial Day, the stock market, apple pie and drinking while driving.

Then again....apples are not native to America—rather Asia. The only apples indigenous to America are crab apples that were used for cider (instead of uncertain water supplies). These are a very horrible substitute for the malus domestica that we know for pies.

Anyhow... I expect a big day higher testing SPX 3,000. I expected it last Friday, but had to roll POT positions as we were still messing around with SPX 2950 technical numbers.

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 inter42mittent volatility
(-8.52% so far)

POT Logo

We have on wide condors expiring today and tomorrow surrounding SPX 3,000 that we need to keep an eye on.



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.

What one does when they
can't get their first pick in jobs!



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