Pre Market MAY 12, 2025

“Stonkz” are green in the Pre Market today, very very green
News broke yesterday that the U.S. and China have reached a tentative trade deal
The markets are exuberant

Do you set profit targets?
Do you set STOPS and HONOR them?

Years ago, with my own two eyes, I witnessed first hand, had a first row seat, live and in living color, to a group that met weekly and they all traded the exact same strategy.. A couple of them did okay, a couple did well, then the rest, yeah not so much
Management, it came down to “Trade Management”

They traded a 4 legged Strategy known as an “Iron Condor” and it’s as cool as it sounds
It’s made to capture Premium by prices not moving, or moving very little within a defined range…. That strat isn’t applicable for todays market, but how we choose to manage our trades is

Prices are FLYING here in the Pre today, lots of up and down, lotzzzzzzzzzzzzzzzzzz

META is up over 6.5%
JPM +3.62%
MSTR + 2%

You seeing a theme here??? Big day in the making

Today lets manage our existing positions, if an investor took any of the ones mentioned in the past weeks they should be up handsomely today, very very handsomely

We hold the belief that the S+P 500 will rise during this week
Should it pullback, then this trade could lose money and should be managed accordingly

Lets collect Premium on the SPY
This strat is a very common safety play used by the “Smart Money”
Otherwise known as Institutional Traders

We will not enter prior than 30 minutes after the markets open
The reason for that is to ensure that there is no continued whipsaw
We may get in early only to experience pullback then get stopped out

SPY
Bull Put Spread
MAY 18, 2025
Sell the 580 Put
Buy the 576 Put
Again we do not want price below $580.00
Also it would be a wise practice to take profits at roughly 50% as to not allow for any volatility to come back on this shorter term trade
50% could easily be made without much movement on this one

Time to grind
The Options Coach