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

Thursday | May 7, 2020

Hello Eizell.




In the MORNING COFFEE REPORT yesterday, my prediction for the day was “tough call”. This can be seen below as a reminder.


This is exactly what we got—a tough day. The market opened +20 in the SPX and fell to the unchanged line. It sat there all day, lulling us to sleep. Then in the last hour, sellers came in and the SPX fell -20 points.

The ranges are seemingly large; however, people have already forgotten what the market was like back in February and March. By comparison, I could have slept through the day and missed nothing but a false sense of hope we would finally close above SPX 2900.


TODAY: May 7

Another attempt to hit 2900.

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
(-11.83% so far)

POT Logo


We did see one example in AAL that was easy and straight forward with only about a 15-second time between the call being filled and the stock, creating a free put. This was enough to show it can be done on days with better conditions. More importantly, however, I think I illustrated with the FORD example how someone can be giving away huge money if they don't understand value, and that they can't trust the numbers on the screen.



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.


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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