Typically, I prefer to wait until the day of or the day before a catalyst to initiate an options trade but there are a couple of scenarios where I will get involved earlier. Both require some directional bias for the event, however.
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Yesterday, we held an informal, unscientific poll to measure traders’ expectations for 2020. This is what we found: 52.8% of survey respondents believe the SPX will rise more than 10% in 2020. 17.6% said it would fall more than 10%, with 29.6% saying it would finish somewhere in the middle. Then, we measured expectations for a crash. 31.7% of respondents said the SPX will fall more than 10% in a singly day. This seems awfully high, considering that this has only happened three times going back to 1929. In terms of asset classes, traders are most bullish on stocks. 55.1% said stocks would perform best in 2020. We next took a lot at sectors to see which sectors traders are most bullish and bearish on. Survey respondents were most positive on tech, with 71.1% said they were bullish on technology. Real Estate was down at the bottom, with just 15% bullishness reported. Traders’ positive view on tech is no surprise given that QQQ is up almost 40% in 2019, with the Semiconductors ETF (SMH) up 63%. And finally, we asked traders what their #1 stock of 2020 was. And the positivity towards tech continued there. AMZN was the #1 choice by a country mile, with more than double the number of votes of the second place pick, AAPL. MSFT and TSLA were in the 3rd and 4th positions, respectively. Want to participate in our next Trader Survey in January? Join our mailing list below:
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Take our year-end trader poll and give us YOUR analysis of what’s coming next. Then, click here to save 40% on education and subscriptions. Loading… P.S. Don’t forget to click right here to save 40% on education and subscriptions.
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What a difference a year makes! The last 2 weeks of 2018 were mayhem and this year looks to be smooth sailing for bulls. But that doesn’t mean you shouldn’t be preparing for a return of volatility in 2020.
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It may be a cheesy holiday-themed title but the SNAP setup is legit. The stock is showing a possible bullish pattern, with an interesting option scenario we have talked about recently.
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A lot of times we will have option trades start out as call spreads or put spreads but that isn’t the only way to use them. Turning an existing position into a spread can be a great way to manage risk, versus the typical rolling/closing of contracts.
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If you fail to plan, you are planning to fail. It’s a cliché, but it’s 100% true. In this hard-hitting, in-depth lesson — previously only taught at his LIVE Mentorships, Sami Abusaad shows you how to write your own trading plan: In this webinar replay, Sami will show you: What RadioShack (RSH) taught him about trading Why most people don’t understand their own psychology How your trading strategy should relate to your personality What kind of strategies you should choose Why you don’t need a perfect trading plan to get started The reason most people are afraid to get started His actual personal trading plan with all the details Sami’s trading principles that he reads to himself over and over again P.S. Want to make Sami your mentor? Click here to learn about his first 2020 trading Mentorship.
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This week is the last full trading week of 2019. T3 Live’s Director of Education Sami Abusaad takes a look at the current market conditions and what traders can look forward to in the next week. In this video, Sami explains: Why we might see QQQ grow weaker What he loves about DXC Why DTIL looks good despite a crash Which two stocks he likes best as short trades Why he doesn’t plan to trade ARWR, BYND or CENTA
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Today, Sami Abusaad gives traders an inside look into his office so you can see how he trades and scans for day, swing, and earnings opportunities. In this video, Sami explains: How he sets up his seven 40-inch 4K monitors for trading and scanning Why he always stands up to trade What he likes best about a U-shaped desk How he divides his swing trading equipment from his day trading equipment Why he uses 4K monitors
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It’s the 2nd to last week of 2019 and earnings will start slowing down into the holidays. That being said, there are a few big names reporting this week that are worth watching.
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