This week ending on September 16, 2016 we had no trade on Friday, and so thought it was a good opportunity to share why we had no trade. It has nothing to do with our perception of market direction. We shared our market forecast, and we were correct on all 3 levels. The market went down and stayed down breaking through all the levels as we forecast in our morning outlook. Our members received this forecast before 9:35 am EST and they knew where the market was headed.

No Trade Day

We didn’t trade on Friday because we are only trading options on either the day of expiration or 1 day before expiration. This is when we get maximum return for movement in the SPX. Normally on the 3rd Friday of each month, there are no SPX options that meet those requirements, so we simply do not trade. Now there is the SPXPM option chain available on the 3rd Friday of each month. But most of the time the liquidity is not great enough for us to trade it. We are constantly monitoring this opportunity, and if the liquidity increases we would look to begin trading it on the 3rd Fridays. But for now, most of the time we have no trade on these days.

Some traders may still trade the Monday expiration, or use our market forecast to trade SPY options on such weeks. There are many ways to use the information we provide.

But we just wanted to clarify, that No trade days have nothing to do with our confidence in our forecasts, it is simply the mechanics of the option market. We look forward to another exiciting week ahead, Day Trading SPX Weekly Options