Just a couple weeks ago, we put on a delta neutral credit spread in the Industrials $XLI to take advantage of pumped up volatility. That trade worked out quickly and we got out of it at our price target on Monday of this week. One for the good guys.

Now, $XLI is bumping up against some formidable upside resistance. And with options premiums still elevated, we're going to use them to leverage into a bearish directional bet here.

As long as it continues to pay, being delta-neutral short in this environment feels like the right move for me. We've already had some of our May positions hit our profit targets. But there is still meat on the bone for more short premium plays into May expiration.

Next up, something shiny...

The song remains the same. Picking directions in this market is a crapshoot. The way I explained it to a non-trader friend of mine was like this:

Imagine lighting firecrackers with extremely short wicks. Fun and exhilarating when the payoff happens, but way too easy to get burned.

So for me, the safest way to navigate this market profitably is to continue seeking out ETFs to put delta-neutral credit spreads on.

Next up?

With $VIX still holding above 50 and picking a direction is a crapshoot here, I'm still on the hunt for delta-neutral premium selling opportunities.

The way I do it is I scan the most liquid ETFs out there and rank them by volatility. And then I look for evidence of sideways action forming, or at least some very clear risk management levels to lean against.

Options premiums remain elevated in this market. This continues to put me on the hunt for premium selling strategies in the most liquid ETFs.

One of the ETFs showing the highest volatility appears to be starting to settle into a range. And we can sell options very far away from current prices which gives us a lot of wiggle room. 

As markets start to (relatively) calm down, trading opportunities with clearly defined risk management levels are once again starting to reveal themselves.

One such opportunity is presenting right now in the semi-conductors space.

A Bullish Trade? Is Sean crazy?

Believe it or not, there are stocks holding up "well" in this tape. "Well" is obviously a relative term.

JC published a bullish piece on Docusign $DOCU this week that speaks to me and I'm going to leverage this insane volatility into an options trade.

On Monday, I laid out my plan for entering into $SPY Iron Condors steadily throughout the week. I entered into the final Iron Condor this morning and wanted to give you a little update on where we stand with them.

This is the video recording of the March 2020 Conference Call.

I'll start by saying: this is no ordinary week. But you knew that.

If you are sitting on the sidelines, waiting for all this craziness to subside, that is not a bad idea at all. There is no reason to put our money at risk if we can't get a handle on our own emotions during this highly uncertain time.

That said, for those who are willing to wade into these choppy waters with me -- these insane premiums offer us the ability to sell premium FAR away from current prices. I'll share with you my simple game plan for this week.

The boys were out with a bullish piece on China stocks, citing oversold conditions. As JC said: "If the world isn’t ending after all, this could be an interesting place to look for huge winners."

So I've got my eye on a big name that has held up pretty well, all things considered.

The current market calamity is certainly not sparing many of our long or delta neutral positions. The good news for us is the majority of them have defined risk.

At the open this morning, many of our positions traded through our stop-out levels. But an important point to remember here is that we're looking to see a CLOSE below our stop levels. We're don't jump on an exit the second a level is broken intraday.

There is a lot of trading left in today's session. This is not the time to be dumping defined-risk positions into the hole.