TradeWins Inside Trading Newsletter

September 14, 2022

Up Your Options Trading Game: How and Why Technical Signals Work!

Wednesday, September 21st at 4:30pm ET / 1:30pm PT

Keith Harwood, President and Chief Options Strategist for Option Hotline, will be joining us to discuss some of his favorite technical inputs and how they work. Just as important, he'll be discussing WHY they work.

There are many ways to utilize technical inputs and leverage those trades with options, and Keith will explain how and why he's selected these particular signals. Don't miss out on this opportunity to improve your trading knowledge.

Sign Up Here Now to take advantage of this great trading opportunity. All attendees will receive a FREE GIFT, so save your spot today!

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Top Ways to Trade the Fear by Ian Cooper

Spreads versus Outright Futures by Don Wellenreiter

PULSE Options Weekly Newsletter by Chris Verhaegh

TradeWins Author Team

Tomorrow, you could begin doubling your account every single month starting with one letter.

The letter will come from a 20-year trading professional named Ian Cooper. He says, “In 2022, following my trades you would be doubling even tripling your account some months. Let me show you how.”

He will show you exactly what to do... and he’ll give you the blueprint for just $1.

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Top Ways to Trade the Fear
by Ian Cooper

It always pays to use protection.

After some great upside, markets are plunging again. Investors are panicking. Stocks are plummeting. All thanks to inflation and the fact the Federal Reserve may have to get far more aggressive with interest rate hikes, near-term.

So much for inflation being transitory.

The consumer price index unexpectedly shot higher in August, even though gas prices cooled off a bit. CPI gained 0.1% for the month, and is up 8.3% year over year. Meanwhile, economists were looking for a decline of 0.1%. PPI, which comes out later this week, could send markets even lower, unfortunately.

With that, the Dow Jones is down 896 points on the day. The S&P 500 is down 127, as the NASDAQ plunges 485 points. Unfortunately, that’s what happens when you have geniuses running the Federal Reserve.

Spreads versus Outright Futures
by Don Wellenreiter

Why trade spreads when just being long or short an outright futures contract can be so much more profitable? They can be, but the risk is also much larger. For example, let’s say a trader purchased one July soybean contract at the close on June 9th and sold it on the close on June 13th, and made approximately 60 cents (or $3,000), on a margin requirement of about $1,800. Had the trader purchased the July beans and sold the November beans as a spread, his profit would have been 49 cents (or $2,450), but this is a margin of only $1,100. His return on margin on his outright futures was 166%, but the return on margin for this spread was an even more impressive 222%! And with less risk!

In cases where the trader was wrong about a market’s direction, the benefits of spreading are even more obvious. If the trader believed that Dec wheat was a good buy near the end of June and bought it at $3.49 with a ten cent stop he would have been stopped out of his trade within ten days for his full ten cent loss ($500).

First Things First

Earnings Season is basically over. It will start again in earnest in October, but there are still a couple of stragglers worth discussing. While I don’t feel any of these can move the market as a whole, they might trading opportunities.

Monday, September 12
After the Close: Oracle (ORCL)

Thursday, September 15
After the Close: Adobe (ADBE)

The biggest event not on the Economic Calendar is the fact that this Friday is the third Friday of September. As such it’s one of the four Quadruple Witching Fridays of the year.

While Quadruple Witching Fridays don’t have the same effect on stock prices like they did years, if not decades ago, it’s still important to be aware that the broadbased indices (such as SPY) will pay their Dividend Friday morning.

Since stock prices drop by the amount of their Dividends, the first expiration afterwards will have Call prices be lower in relation to Put prices.

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