Selling on This News

Rolling with the Market – What a Down Day Taught Me

Today started with a bit of a lift—slightly better inflation numbers than expected helped the market open higher. But as we get close to the close, we’re in the red, down about 0.4% (I filmed this about 40 min before the close).

So what happened?

Well, a couple of headlines shifted sentiment. First, there was some saber-rattling out of Iran—Middle East tensions are flaring up again. That’s never great for the market. Then The New York Times dropped an article about some Republicans pushing back on Trump’s proposed tax cuts, arguing that they’ll explode the debt.

Less stimulus talk = less juice in the economy = less enthusiasm from traders.

Still, it’s not a big move. Just a giveback of the morning’s modest gains—very much a "meh" kind of day overall.

From a trading perspective, I had a chance to roll some daily SPY covered calls. I went straight at-the-money early today, picked up a nice premium, and now they’re out-of-the-money. Not bad for a day where the market fizzled.

Lesson? When we’re near highs and things feel shaky, I like to roll closer to the money and stay flexible. No need to get cute—just keep it tight and adjust when needed.

#RollingCoveredCalls #OptionsTrading #MarketUpdate #WealthBuildingWithOptions

---

Options involve risk and are not suitable for all investors. Before trading options, please read Characteristics and Risks of Standardized Option (ODD) which can be obtained from your broker; by emailing investorservices@theocc.com; or from The Options Clearing Corporation, 125 S. Franklin St., Suite 1200, Chicago, IL 60606. The content posted by our authors is intended to be general education and / or general information in nature. We are NOT providing advice for any individual trader. No statement made by our authors or subscribers is intended to be a recommendation or solicitation to buy or sell any security or to provide trading or investment advice. Traders and investors considering options should consult a professional tax advisor as to how taxes may affect the outcome of contemplated options transactions. Futures and forex trading contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial investment. Risk capital is money that can be lost without jeopardizing one's financial security or lifestyle. Only risk capital should be used for trading and only those with sufficient risk capital should consider trading. Past performance is not necessarily indicative of future results.