Market Overview

Mid Day Trading Update – Market Continues To Falter


The gap up in the futures this morning was a quality set-up from the powers at be, considering we broke Friday's lows on the S&P. Price action today has been all over the place, with several short squeeze attempts off the backs of economic data released at 10 AM.

Writing calls on just about everything is the strategy that really worked out well today. All the names that we've been aggressively long here at for the last month or so are experience major pullbacks. Short opportunities are out there in full and traders would be wise to wait for bounce opportunities to short off of or write calls against.

The choppy price action is definitely making things quite difficult though. Most traders were enticed into long positions from the premarket action. Any type of directional bias in this type of environment can really hurt you. Indexes will turn at the drop of a dime and leave you with depleting options premiums.

This month we have decided to ease up on a lot of our alpha-style trading and have opted for writing strategies to capitalize on the choppy environment. If you read tape well, you can sell some solid premium to retail traders who are still looking for volatility early on in the week.

Stay tuned for more updates!

The preceding article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.

Posted-In: Options Markets Trading Ideas


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