Lets use our....

Hey traders, how are you?
The markets didn’t have their all time best day today
$DJI ( ▼ 0.51% )  
$SPY ( ▼ 1.08% )  
$QQQ ( ▼ 1.91% )  
$IWM ( ▼ 1.53% )  

I’ve asked you before, do you play any musical instruments?
I do, I play the guitar, allegedly…. lol….
There’s a stat in Neuro Science about how listening to music lights up one part of the brain
But playing a musical instrument lights up the entire brain
If you’ve ever played a instrument before you get it, listening is one thing, but after you begin playing you will hear songs differently than when you only listened… That’s not just me saying that, that’s actual Neuro Science…. And I agree 110%
I’m a walking encyclopedia of 70s / 80s / 90s guitar riffing bands
But it wasn’t until I started playing did I “feel it” the way that I feel it now

The market is kind of in no mans land at the moment, it’s waiting on Wednesday which is FMOC…
Will the FED drop rates? And if it does, has that already been factored into this current market?

We have to use our brains here, we have to be smart. Not smarter than the market, but make smart plays and not try to outguess it. That’s one of our key tenets here at theoptionscoach.net 

This morning when I highlighted QQQ it was a good looking play at the time
We had that last week with $GE ( ▲ 3.95% ) also so this is a perfect time to share
This morning QQQ was trading in the $626.00 range
I mentioned Bull Call Spreads for the 625 / 630
Buy the 625 / Sell the 630
QQQ slipped, and price went down to $622.50 and then closed at $624.28
This is a “Saving Grace” of when a spread goes that way
THIS DOES NOT HAPPEN EVERYTIME NOR SHOULD IT BE RELIED UPON
Right now if a trader bought at the MID price as mentioned they should be ITM
Yes, green, even though the stock dropped on a bullish play
The 630’s that were sold will offset the loss of the current 625’s that were bought
There comes a time though that when it drops much more we lose that edge and the position will got OTM
Traders can get “confused” when the stock drops, they are making money on the short strike, then hope for the stock to drop more. NOOOOOO. Just NO….
The reason is we always pay more for the long call we bought than we collect with the short call we sold

Seeing how this works? We have to be smart
And right now the smartest thing we can do is to lay low, wait for Wednesday and then get back to work

The Options Coach