Thursday, November 2nd, 2017

Index options trading- how to survive the worst

Index options trading. Well this week’s employment report was no comfort for that. US Non Farm payrolls lost 533,000 jobs in a single month. If you divide that by 30 days we are losing jobs at the rate of 17, 500 jobs per day, and its getting worse.This is the worst job loss reported in 34 years, according to Labor Department statistics. As per Market watch ” It was only the fourth time in the past 58 years that payrolls had fallen by more than 500,000 in a month. Since the recession began 11 months ago, a total of 1.9 million jobs have been lost. Job losses in September and October were revised much lower.”

“This is almost indescribably terrible,” wrote Ian Shepherdson, chief U.S. economist for High Frequency Economics. “The pace of job losses is accelerating alarmingly.” Over the past three months, 1.26 million jobs have been lost, a pace of job destruction exceeded only once since 1945.
This shoved the unemployment rate from 6.5% to 6.7% in a ugly pattern that is not ending anytime soon. This seems to be getting worse than better, and there is no adult out there who is managing this economic crisis with some dedicated enthusiasm. There is almost a power vacuum in the White House, with a lame duck President sitting out his last days in a horrific glory, while a newly elected President is completely powerless and sidelined. The country seems to be rocking back and forth, sliding deeper and deeper into a recession.
Meanwhile the auto makers are back in Washington with a hat in hand, begging for a tax payer’s bailout in the tune of $34 billion. At least some people don’t know, that Chrysler Corp and GMAC are owned by the Wall Street Hedge fund Cerebus. Its almost like bailing out a Hedge fund, rather than an auto maker, and taking money from the poor, distributing to the rich, a formula that we have seen played out over and over again.
Despite all the bad news on Friday- Stock market rose in the last hour of trading to 249 points as if to defy all odds. There was no good reason for this rally, its merely a bear trap set up to pummel longs in the coming next week. You alway think, this will continue on, but sadly enough, we have been climbing these trees of promises for a whole year. Sharp mind bending rallies, and almost immediate nasty sell offs, that takes us lower than the previous lows, and the charts keep getting destroyed with every new low.
We have posted some Intraday trades for subscribers in the membership area. These trades require quick stealthy ability to enter and take $1 or $2 profits and come out. I have been trading $SKF $SRS $ SDS and $SMN and some ultra short ETFS.

When the market broke down after Friday’s unemployment report, we posted short trades on $INFY $CHK $ and $ENER in the member’s subscriber area. These trades are for the active traders and with margin accounts above $25,000.

There is a lull in the income type trades that we always like, due to the volatility and higher VIX which makes Iron condor trading, Index spread options trading, and Index options trading, much more riskier. By avoiding these Index option trades, we have managed to preserve our trading capitals intact, and will live to trade another day. Many Option advisory services are still cranking out trades and losing big time each month. There is no excuse for such stupidity, not knowing your markets, and putting your followers through needless risks.

Comments

4 Responses to “Index options trading- how to survive the worst”
  1. daniel says:

    US Non Farm payrolls lost 533,000 jobs in a single month.

  2. Compliments on the information you are providing on your site. This is just the kind of thing I am looking for. I aim to understand option trading with a view to investing. I want to understand the risks and benefits, and this will help. Are there other good places I can search for similar information?

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  1. […] How To Repair Credit Scores – Do You Need To Use Credit Repair Companies | truecreditfixes.com wrote an interesting post today onHere’s a quick excerpt Index options trading. Well this week’s employment report was no comfort for that. US Non Farm payrolls lost 533,000 jobs in a single month. If divide that by 30 days we are losing jobs at the rate of 17, 500 jobs per day, and its getting worse.This is the worst job loss reported in 34 years, according to Labor Department statistics. As per Market watch ” It was only the fourth time in the past 58 years that payrolls had fallen by more than 500,000 in a month. Since the recession began 11 […]

  2. […] able to place our monthly IRON CONDORS  on indexes this time and drive some income our way soon. Index options trading is still somewhat unsafe with those long and static positions when the market direction cannot be […]



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