Hey Good Kids,
It was a strong week in the stock market! The major indexes reversed last week's bearish move. It's a bit unusual—not a single sector on the chart above was down this week
We're heading into a shortened holiday week. The market is closed on Thursday and open for half a day on Friday in observance of Thanksgiving.
For weekly options sellers, I'll be rolling all of my options on Wednesday. The volume on Friday will be very low.
I always mention when we expect lower-volume holiday weeks, this doesn't mean stocks won't have big moves. It simply means many traders will be away from the market, so liquidity could be a little less, and it might be boring. But as Good Kids, we're fine with that!
After all, shouldn't we be away from the market as much as possible, enjoying our lives while the market is working for us? That's my plan, and this passive philosophy is part of all the content I create here at Good Kids Trading. I'm doing exactly what I'm encouraging all of you to do!
We have some retailers reporting earnings on Tuesday.
Earnings season has been an excellent opportunity to find trades easily. And no, not every single put sale has been an instant winner. I'm looking at you, CROX and HAS... But let's remember that when we sell puts on a company and the shares keep going down, we're just agreeing to buy the company at a lower price. Do you remember the article I wrote about hiding the profit and loss of your puts?
Don't focus on the P/L of the trade; focus on the strike.
With the indexes near all-time highs and since I'm still cautiously bullish, I'm putting on alternative trades that I wrote about in this blog post.
Instead of a naked put, I will sell a put ratio spread—a 1-1-1 or 1-1-2. I'm posting 95% of my trades in our discord, and it's 100% free!
It's important that you have multiple strategies in your trading toolbox.
When indexes are at all-time highs,
VIX is relatively low,
The greed-fear index is leaning more toward greed
We need strategies that have defined risk but still give us some positive delta and, most importantly, some theta to get paid money in our sleep!
As you've seen in Discord, I'm focusing on income-generating trades by selling weekly options against longer-dated options. This is a defined-risk strategy that has been working well for me the last two months.
I hope everyone has a great Thanksgiving! I'm grateful for the community we've built here at Good Kids Trading, the coaching students at Mr. Money Maxwell, and the Inner Circle members. I love seeing you succeed in the market. I'm seeing huge wins and amazing progress with my students.
As the old adage goes, the best time to start was yesterday; the next best time is today. So with that said, get out there and make some money in the market with us.
If you aren't sure where to start, why don't you send me an email or set up a quick introduction call? And don't forget to participate in our free Discord community to stay connected and learn from others.
Happy Trading, Good Kids!
-$Maxwell
This is not financial advice, there are no guarantees, and best of all there is no charge in the information, it's purely educational and showing you what I am doing and how.
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