Why Trade Options – How To Trade Options Video 43 part 2


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There’s always another opportunity.

We’re going much lower. The volume on the declining issues is getting higher. We just jumped down to 321 on the Dow. I may close this out, here. Let me just close out 400 shares. I’ll let 100 ride.

I expect that to pop right back up again. It should go now. There’s definitely something wrong, here. There we go. I’m glad I kept 100.

I have one more 100 I can sell. I’m going to sell it close to this top, if I can. I’m keeping my eye on the internals. They still look negative. We’re hitting 41, here. Now we’re at 48. That’s pretty close to the high, right there.

I’ll exit the rest of these. $57. Let’s see if it breaks through. It’s at $69.49. Market internals look like they’re working in my favor. Everything is pretty negative. The Dow is dropping to 339, 340. We may top out here, but the internals still look like they’re working in my favor.

There is a lot of volume to the downside, here. Now, there are only 36 advancing issues. That is absolutely horrible. It’s pretty bad. I’ll hang in there with us, last 100-lot.

51. Let’s see if we can break through, here. I would like to buy the extremes. I think that’s all we’re going to get, so I’m going to get out there, while it’s $69.50, which was my target.

All I have to do is – I have the DDM loaded. All I have to do is go back and load up my DXD again, and wait for an extreme. I like to play those extremes, and I like to play my volatility. Way down on here, on the DDM, I might actually go for a long position here, on the market.

We’re down 341 on the Dow. The market internals have not turned yet, but I’m getting ready, because I like those extreme moves. If I can hit the extreme on one of them, I’ll show you how you can make some money. I’m going to go long on this. If it breaks through here, and we get a long bar down, that would be a great time to go long.

We can get some really positive action on these. Let’s see what the market internals look like here. We’re down 347, and 348. I’m selling off. It looks like it’s holding right at this level here.

It’s down 351. 353. It’s going. I probably should have held on to my DXDs a little bit longer. I probably would have made more money. There it goes. 377. 379. It’s still going. 382.

It still looks bad. Internals look bad. I’m trying to catch those extremes. I probably should have held on to the DXD. You can’t think about that, because you have to worry about the next trade. Always look at the next trade. Try to buy those extremes.

Come on, big long bar. 397 – do I hear a 400? Let’s see where we are, on a historic basis. We’re way below that. Let’s see where we are on the VIX. I’m just curious.

The VIX is up around 35, here. It’s made another high. I don’t want to go 5 days. I’ll get my DDM, because I want to hit those extremes.

I missed it. I could have hit it at 320. Let’s see what that is – it’s around 312. Let’s see what the low of that bar is. The low is $53.11. I want to see if I can hit that $53.11, now that it’s bounced back a little bit. If it comes back in, I want to hit that $53.11.

I may not get that chance. If It closes in the upper half of this bar, then I’m going to go long, on the very next bar. All of a sudden, it looks like some buying came into the market. It’s amazing. We’re down 400 points, and some buying came in.

If I trade down below 50%, on that bar – if I hit $53.11, I may jump in again. Even $53.25 looks attractive, at this point. The market internals are not confirming. In fact, they look like they’re still going to go down. Let’s see what happens. We have a green bar here. We might have something here. We might have a long trade, after all – a very quick one. Back up to $53.50, maybe $53.60. This is going to be a very short-term trade.

Basically, what you are, is a speculator. You are providing liquidity to the market by speculating, especially at these extreme levels. When people want to get out, you say, “I’ll take that.” You take their stock off their hands. Hopefully, other people see that you’re taking stock off your hands, and other speculators will jump in to take stocks off people’s hands, and raise the prices.

I may have missed this one, guys. $53.59. Let’s see where we’re going here. We’re almost at the end of this bar. $53.41. Now you get into a higher-risk situation. If I had been paying attention, I could have gotten in at $53.11, and had a 30 or 40-cent profit on that. That’s why I like to trade on the extremes

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