No, that’s not a typo…I am talking about SPY, the S&P 500 ETF.
As my Trading Floor members know very well, I like to trade SPY options when the overall market experiences range expansion and volatility.
In a way, options trading reminds me of penny stocks.
That’s because trading options require less capital than stocks, and if I take advantage of the right options set up and trade, the results might be similar to that of a big penny stock mover.
Just like this 92% gain on SPY
How do I do this?
When I trade options in the SPY, I look for areas where the stock might be short-term oversold or overbought.
I find those areas by doing live market analysis in the chatroom and analyzing the intraday charts.
Here’s a screenshot from my trading journal, showing my entries and exits on the SPY chart:
The best part: I did it live, as I always do, in front of my members in the Trading Floor chatroom, and posted my entries and exits in the chat in real-time:
The Bottom Line
While I’m known for being a penny stock guru, I don’t only trade penny stocks.
I love to expose my members to different strategies relevant to other market conditions.
So if an options trade in SPY presents a better risk: reward opportunity than a penny stock trade, I will certainly go for the SPY trade.
Do you ever trade SPY or options?
Let me know. I’d love to hear from you.