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What Trading From Paradise is Teaching Me

I've spent the past eight days working from paradise.

The bad thing about U.S. trading hours in Hawaii? Markets open at 3:30am.

The good thing? Closing bell rings at 10am.

So while I've had some very early mornings, the beauty is I've been able to work outside with my laptop and catch every sunrise while I've been out here. Pretty amazing, actually. This has been my view:

Amazing, right?

Then when the closing bell rings, I basically have an entire day to do vacation stuff. Beach time. Snorkeling. Hiking. All the things you're supposed to do when you're in Hawaii.

And to top it all off, once the sun goes down around 6:15pm, there's really nothing left to do but eat dinner and go to bed early. I could get used to this lifestyle.

Of course, as is customary whenever I attempt to vacation, volatility decided to show up in the markets. This trip was no exception—VIX spiked on Friday, markets got smacked, then whipsawed back hard on Monday.

The volatility triggered a couple exits in my All Star Options swing trade portfolio, which is exactly what's supposed to happen when you have proper risk management in place. But so far, the damage has been limited.

In fact, the portfolio is higher in value today as I type this than it was when I left on this trip.

Maybe if I just ignored the markets altogether while I was here, I might not have even noticed anything unusual happened?

There's probably a lesson in that.

When you have solid plans with pre-defined risk, when your stops are clearly laid out, when you're not over-leveraged or taking excessive risks—you can weather volatility without being glued to the screens. You can actually live your life while your portfolio does what it's designed to do.

Today's Live Options Jam Session is all about getting caught up. We'll review the exits that were triggered, update stops on positions that are still working, and I've got some thoughts on portfolio hedges for those of you who are into that sort of thing.

Hopefully the wifi holds up and I'll be able to broadcast live from the beach on the island of Kauai.

Join me at 3pm ET for the Options Jam Session. Let's see what paradise internet can do.

 

Remote video URL

 

Sean McLaughlin | Chief Options Strategist, All Star Charts