Building A Cash Flow Pipeline

Pure, single-direction trades like long calls, long puts…and debit spreads…require a significant movement in the underlying stock or index to be winners.

Never Be Assigned Again

SPY is an ETF – a security that tracks the SPX index through the price of its shares. Like an individual stock, you can trade the shares or hold them as an investment.

The Rubber Band Effect

“Sure, we can take precautions, but gaps can easily blow up overloaded accounts. And they beg the question, what next?”

“Is this going to keep dropping like a waterfall? And how does one trade in this environment?”

“Let’s take a moment to go into what I’ll refer to as the “rubber band” theory of price action and how this applies to gaps.”

“Think about a rubber band.”

Trade Mistakes – Owning Up and Moving On

Over the course of the day, my algorithms had gotten me out of the trade, but the auto-sell order stayed on the books. It became a sell-to-open, and suddenly I found myself in possession of several short naked calls.

Horrorshow Cliffhangers

I fully expected a follow-through on SPY’s down move Wednesday. It didn’t happen that way.

Getting an Adjustment

Yesterday I turned two potential losing trades of $500-700 into two $20,000.00 winners.

Income Trading with Options

Many need help wrapping their heads around how I can receive a consistent weekly and monthly payout from the market. Here’s the process.

Acorns into Oaks

I believe it’s far better to make fewer, larger trades than many lower-probability ones.