Davis Martin of DailyProfitMachine.com noted that with the market trending up seemingly without regard to news and more, trading at-the-money calls on the SPDR Standard & Poor’s 500 ETF (SPY) has been a consistently profitable way to play the market’s biggest trend. This kind of trade is Martin’s bread-and-butter set-up, and he explained how it worked and why he varies trade sizes based on market conditions, time of day and more.

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Davis Martin is the head trader at DailyProfitMachine.com. He trades SPY calls and puts and swing trades mid-large cap stocks and stock options. At the time this interview was taped, he did not hold any SPY options — having sold his position — but he looks at them as a possible trade every day, as discussed in this interview. The Raging Bull podcast features experts from the site talking with Raging Bull editor Chuck Jaffe on his show, “Money Life with Chuck Jaffe.” You can learn more about Chuck’s daily hour of market and personal-finance chat at MoneyLifeShow.com; you can subscribe to the Raging Bull podcast via iTunes and other podcast providers.
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