I've gotten a lot of feedback from yesterday's note. Turns out, there's a lot of Steve Poltz fans amongst you. I had no idea! If you missed yesterday's note, you can read it ...
In trading, we prize rational, mechanical thinking. We try to minimize emotion wherever possible — following systems and rules with robotic discipline to reduce errors and maximize returns.
Today's trade is in a consumer staple that has made fresh 52-week highs recently, is on the cusp of a breakout from a multi-year base, and has dirt cheap implied volatility in the options.
I source ideas from my usual places. I scan for my favorite setups. I assess where implied volatility sits to inform what type of options strategy might have an edge. I figure out how much...
I watched JC's monthly strategy session this week and he discussed some energy names, which got me thinking -- I don't have much energy exposure on the books.
So today's trade is in a name who's set up I'm liking the best right now...
