I was very surprised to see the market absorb the blow-up in IBM this morning. I figured the market would be down 50-60 points by now. I would prefer that in comparison to days like this where you go up a little, down, a little and overall take no direction on the day. Emotions flare, accounts churn, and blog posts suck (content wise, of course).

As always, don't expect anything out of the market during earnings season. Each days movement is always news driven. Make sure you are adaptable to the market instead of trying to predict which way the market will move. Truth is we don't know the biggest upset, disappointment, or surprise on wall street. If you are not trading small, conservatively, or defensively, I would suggest you consider doing so.

Has anyone traded any explosive straddles/strangles yet? If not, but you are thinking about doing so, get in early!!!!! Please. Get the options when they are cheap. You'll have a higher probability going into the trade.

If you could, someone throw me an idea of a topic to discuss.

Recommendation: Fight the urge to jump ship.

Posted by Option Addict on 1/19/2007 at 10:40 AM | Permalink