While the Global Trading Dispatch focuses on investment over a one week to six-month time frame, Mad Options Trader, provided by Matt Buckley, will focus primarily on the weekly US equity options expirations, with the goal of making profits at all times.
MOT (WO) members –
Wild week with the market last week triple digit up/down, with significant moves intraday.
Very good session that recorded this time so please make sure you watch the replay if you missed it or watch again.
I’m taking a break from weekly options in specific names/index (SPX/AAPL) and switching my fire to short term trading in vol and market direction. I believe as we melt up we will see VIOLENT swings in both directions (like last week) and I’d rather use these etfs to potentially profit on the swings.
I am going to focus on quality names and doing synthetic stock/LCDs with protective puts, and trading the front months in those names with short upside calls (if NOT on a tear) and also front month spreads and iron condors. If you have a strategic mindset on a name out a couple years, you should also have one for the front month. This also lowers our overall cost basis in the symbol as well.
Like Greg says below, LCDs may not be sexy, but over time they build up a nice return.
Take a look at what Greg had to say about his LCDs:
I’ll talk more about this tomorrow but here are my 5 sectors going forward, while trading weekly’s on VXX/SDS:
1. Tech: I like AAPL, FB, AMZN (or your own FAANG)
If an investor wants to diversify take a look at using the XLK instead.
2. Financials: I like JPM, MS
If an investor wants to diversify look at XLF.
3. Defense: RTN, LMT, GD
Or use ITA to spread the risk and trade the sector.
4. Energy: XOM, COP
Or use XLE
5. Emerging Market: Go with a Captain Kirk trade and boldly go where no one has gone before! Obviously people are going here LOL look at our EWZ trade since the Temer scare. Two days later I recommended to buy it and members have seen triple digit returns.
EWZ, EWJ, be careful with FXI and RSX with what’s going on in the world.