Hello TEBers! In this post we will discuss an example of rolling out (and up) a credit spread on Mallinckrodt (MNK) that I initiated a week ago. The quote by Jesse Livermore pictured above is fitting as time really is your best friend when it comes to credit spreads. Credit Spread For those who don’t […]
Continue ReadingAs traders we need to constantly monitor our trades and manage risk/reward profiles. However, what about managing trades as we approach a market moving news announcement, such as today’s rate decision by the FED. Trade Management This basically refers to everything a trader does upon the execution of a trade to maximize profit and minimize […]
Continue ReadingUsually my posts get into the nuances of trading on a whole with such topics as trading plans and setups. However, today I’m going to use a market specific example to discuss the recognition of a trend and subsequent obvious trade setup. TREND The definition of a trend is the general direction of a market […]
Continue ReadingIf you are an active trader you’ve probably frustratingly grunted “there’s no volatility” at some point in recent years. Now, that has clearly changed in the past month with the VXX spiking above 30 as recent as a week ago. We haven’t seen that level of volatility since the turn of the new year. Market […]
Continue ReadingOur morning game plan for the gap higher played out according to script. We were looking to short-sell a higher open-only if, we saw a higher push in price action off the open print. We expected the selling pressure to come in around the previous day’s low but the SPY traded a little higher before […]
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