If You Can’t Take Notes, Then Try Trading Them
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If You Can't Take Notes, Then Try Trading Them

John F. Carter - January 22, 2016

Hey guys, this is John. Welcome to the free video. This was a nothing day. It was not a good day for bulls. A fair day for bears. But really, there was just nothing going on. In terms of the technicals, after looking at the QQQ on a daily chart, obviously yesterday we had the big rally, and today we just had the consolidation. Obviously, it's very key right here for bulls, if they are going to get anything going--sorry, I'm laughing. I was looking at this, I thought it was the daily chart. Right above this, you can see right here there's a 78 minute chart. I'm looking at the 78 minute chart going, like, who cares about the 78 minute chart.

Okay, anyway. We are in a daily chart. So if we can push up above $102.37, we could get some additional short covering to the 21 period moving average. I think that's a long shot, but it can happen because there are so many people short here, we're so extended to the downside, we can get a short-covering rally any time, and a short-covering rally to the 21 EMA does not in any way, shape, or form change the bears nature of this market.

So that's the first thing to keep in mind. If we look at the Nasdaq ... and by the way, part of the market has been actually responding to crude oil. Since crude oil has been getting crushed, that kind of put the market into a tailspin, but you can see here that crude oil is actually back to around 30 bucks. At least it's stabilized. We're seeing stabilizing crude in conjunction with stabilization of the market, and if we look at Dollar/Yen--cash--essentially the way this works--actually, I'm so used to looking at the Yen futures. Let's just go to the Yen futures.

So Yen futures, essentially they've been popping up here on a weekly chart, right? Now they're losing momentum, and if they start to roll back to the downside, that is going to provide support for stocks. So at the end of the day, what kind of market is this? This is a market in which to sell premium, for the most part. I did one futures trade today on the Nasdaq. Yesterday was a great day, trading three lots of the Nasdaq. Today I did one trade. At one point we were up 300 bucks. I moved my stop from 10 points to entry plus a point. Came down, stopped me out, I made $65. That was the extent of my Nasdaq futures trading today.

And that's okay. The whole point of trading is that when you make money, you gotta keep it. After a good day like yesterday, half the goal is making sure that you keep it. We certainly did that, and added a few coins to that.

So I also wanted to look at Starbucks. SBUX, obviously a solid company. They sell a lot of coffee, and it's got earnings. They closed at 59 after hours, they're down about the expected move. Looking to see what that one can do after hours.

And then for Twitter, I thought TWTR would be interesting here. TWTR has got high implied volatility and there's a lot of expectation in that stock, right? So the trade I did on this was essentially selling the $18 straddle. It expires tomorrow, but buying some protection: $20 call, $16 put. It's just a couple of pennies for that protection. Just in case it gets taken over tomorrow or something like that. The idea here: implied vol is at 84%. 84% implied volatility, which is at 89% of its range, okay? It's super high at the top of its range, and just looking to get some premium tomorrow. So it's flat tomorrow and kind of quiet, and that premium decay goes right into our pocket.

So what about tomorrow? So for tomorrow, this is the Nasdaq futures chart I like to use. This is the one I was trading yesterday. Today, the only trade to me that made sense was right here. We did it, and that was the one that popped up, came down, and stopped me out. There was nothing else to do. That being said, there's some pretty clean set-ups right now on the ten-year note in the 987 tick chart. I'll be talking about these more tomorrow in the live trading room, and I'm also going to cover T notes in our Saturday futures class.

By the way, a lot of times when people get into futures, they think stock index futures. These are WAY easier to trade. Okay? If you want to sign up for this class, which is this Saturday--if you see something like this, the only reason that I'm going to do a class on futures is because it is time to do a class on futures. The markets are right for it, and if you aren't trading futures, that's fine, understanding how the futures markets work is great, and it's going to give you an edge when you're trading options. Understanding how the futures markets work can give you an edge when you're looking at the internals, okay? And decide, like, "all right, I need to dump my call options on Google here." Because the internals are turning.

And then, of course, you can just trade futures, which is great. So I'm super excited about this. These are the biggest questions I'm getting asked in the trading room. "I see you doing futures trades, how do I do it?" We're going to be talking here on the Saturday class myself, Tony, Neil. All the basic soup to nuts, so that if you're a newbie, you can get up to speed. answer all the basic questions and then we're gonna go into some very powerful set-ups. And then, of course, live trading here. Three days of live trading. That includes the Saturday class.

If you're going to do one of these, and you're ready to do this, I completely and highly recommend this. The goal is, trading a one lot, you could actually pay for this class, as we're doing it. Also, we do have a couple of seats left for our elite event here in Austin. It's live, and this includes everything. If you want to dive in and do this, these are awesome events. We only do two per year, and for those who are coming, I'm looking forward to having you there. You guys have a fantastic evening. We'll see you at the next update.