It was a back and forth week for us at SPX Option Trader.  We ended this past week with -8% ROI in our SPX weekly option trading, +5% ROI in our SPY weekly option trading and -80% ROM in our SPX Spread Trader.  Not every day, week or month is profitable. This is a reality of being a day trader. Only those who have a successful strategy over the long term and have the emotional fortitude to weather the drawdowns can be successful. We’ve seen that over these past few weeks.

The key to dealing with negative emotions in trading is to pause and reflect over one’s past performance. Drawdowns happen, they have happened in the past, and they will happen again. There are days where nothing seems to work, and days where everything works perfectly and that is part of trading. A trader needs to have confidence in their strategy and ability to trade. It is also helpful to ensure you are trading a small enough lot size that down days and weeks don’t cause you great concern. A clear signal of trading too large a lot size, is if down periods cause great concern.

Of course, the past is never a guarantee of the future. But we have found in our many years of trading, that as we stay consistent and keep trading each day, we are successful over the long term. We never know what tomorrow brings, but we are confident in our continued success! We look forward to another exciting week ahead, day trading SPX and SPY weekly options.  Below are our comments for each trading day of this week:

As a reminder, the markets are closed Monday, February 20^th. Normal trading activity will resume on Tuesday, February 21^st. Enjoy your extended weekend!

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