It was a slow but profitable week for us at SPX Option Trader. We had no trades this week in the SPX Daily Outlook due to volatile market conditions. However, we did have 2 trades in the SPX Spread Trader to end the week with +48% ROM.  It is extremely rare to go this long with no trades. This happened to us earlier this year in January, and then again during March of 2020. In times of extreme market volatility, the weekly options tend to be a higher price. The extreme price of options just makes our normal approach to day trading too risky. Our market forecasts are still being shared each day. Our forecasts and target levels continued to be extremely accurate, for those who are willing to take the risk of trading expensive options. For example, over the past 2 weeks we have hit all 3 target levels 9 out of 10 days! We’ve hit at least the 1^st target level on all 10 days. So, our forecasts continue to be accurate, despite the volatility. We are confident that the option prices will come back down to a more reasonable level shortly, and then we will be able to resume more normal day trading. Until then we remain patient, waiting for favorable conditions before trading. Due to the nature of credit spreads, those trades are not affected by higher option prices, which is why we are still able to trade and see a nice profit in that strategy. Below are our comments for each trading day of this week:

This content is for members only.