It's no secret the oil and energy sectors have been outperforming in 2022.

Of course, when a trend like that is no secret, it tends to become a crowded trade. And we've seen a taste of the ramifications of that in recent weeks. There were some...

For this week's trade, buying $XLI January 130 calls for 35 cents or cheaper.

Get the full details, risk management procedures and targets for this trade here:

Investor sentiment is bad. Historically bad.

Don't take my word for it. Check it out for yourself.

Sentiment has only been this...

I caught the last 30 minutes-ish of the live Elon Musk interview on TED Talks Thursday morning and I found it riveting. Sadly, I missed most of the discussion regarding his recent splashes with Twitter.

Picking up when I did, there were other...

I read a book recently that got into the fact that any and all edges in trading, no matter how robust, degrade over time.

The author listed a variety of reasons, but the biggest one that caught my attention is that if the edge is so good, then...

Yes, it's tricky both tactically and mentally to get long in the stock market right now. One look at the broader indexes would give any rookie market technician pause.

That said, there are still pockets of strength that are working and growing...

What Happens on Expiration Day when I'm holding long options?

I’ve gotten some questions recently about what happens to an open options position if we’re still in it when the contracts expire. 

Caveat: I will rarely hold an options...

I promise this isn’t a “Go-Have-a-Baby” post that talks about how the greatest thing a human can do is procreate.

I’ve recently come to somewhat believe that. But I won’t be that guy here.

My friend Michael Nauss (...

For this week's trade, we're selling an $XLI May 97/105 Strangle for approximately $2.85 net credit. This means we're naked short both the 97 puts and the 105 calls.

Get the full details, risk management procedures and targets for this trade...

Volatility is not done with us yet. It ain't going down without a fight! At the time I'm writing this, $VIX is +15% on the day and +31% since Monday's close.

This has me back on the hunt for some premium selling opportunities.

And an...

Where do you find your trading headspace?

How do you get to a place where you can immerse yourself in “the Zone” to think deeply about trades, strategies, strategizing, or new ways to approach risk management?

For me, far and away the...

For this week's trade, we're putting on a $CCJ September 30/40 Bull Call Spread for an approximately $2.20 debit. This means we're long the 30 calls and short an equal amount of 40 calls for a net debit which represents the most we can lose in this...