Case Study?

So after a big push to 13,000, the market wants to catch it's breath. Not a big deal, right?

This provides a good opportunity to give some of your puts a chance to shine! After all, this is why they are in your account. If you don't have some, find some.

I also noticed the request for a trader interview. Plenty of people wanting to hear what someone who is doing this for a living has gone through, and it makes sense. This was the whole reason I started this blog. While it is one thing to hear all of the professional traders teach strategies at Investools, there are not too many open forums where you can read/ask questions/interact with one on a daily basis. I have traveled the same road that all of you have traveled. But what I did not have was so many tools and such a community available at my fingertips.

I will make a few comments about Brett though. Out of any student I have met in the 4 years I have worked for this company, I have never seen anyone with the drive that he possesses. In fact, our first interaction was an e-mail I received from him after attending one of my trading rooms. He mentioned that he took to my trading style, and that it was easy to relate to. Then the e-mails started to pour in. In fact, I even remember asking him early on if he could tone it down. However, Mr. Persistence only kept them coming. I respect that. If you want to be successful, you'll do what ever it takes. Once I realized this was going on, I decided I would do whatever I could to help. That's when I started to try and beef up this site a little bit. This way it could all be done publicly.

I have watched Brett fall, get up, fall, get up, fall and get up. Through his persistence and time spent he is only weeks away from making this a full time job. After 10,000 emails and a long journey to find a trading approach, he has optimized his own trading style and is properly equipped to do this for a living. Only thing he needs to do from here on out is trade his plan and stay disciplined.

Ask him and he will tell...this is not impossible. I wrote an article a while back explaining that not every person winds up being a successful trader. There is a huge turnover rate. Again, these are the people that don't follow the basic themes I discuss here everyday. I know each one of you has the same potential that Brett does. Now you all have to want it as bad as he did.

In closing: Brett, I have told you plenty of times...but I will tell you again. Great job! I am proud of you. I also appreciate how you have taken this experience and turned it around like I have done. Once you achieve your goals, you turn around and help others achieve theirs. Brett is one of the biggest contributors on this blog. In fact, he gets more press than I do. Keep an eye on what this guy has to say. He has my endorsement.

BTW- I noticed a suggestion a couple weeks ago to start sharing pictures of each other. I have one from Bretts profile he said I could share. Enjoy!
Recommendation: Give Brett a hug.

More on these two sections in a minute!


As a lurker, I have to say thanks to you, Brett, C&C and all the rest of the people that share their thoughts, experiences and picks on this site. I would like to contribute, but when I read the comments, or your posts, I realize that I have a long way to go to be able to add anything to the discussion. Once again, thanks for everything!


Thanks Jeff,

at least you put a flattering picture of me up there.

Jeff: That is really nice of you to post about Brett.

I can say that everyone in this blog wants to thank you, not for your picks, but for your help in teaching us how to trade. You really stand out as a person, a trader and a mentor.

We can hear your energy every time you speak thank you again!!!

Brett if you stil have the call on CRS dont give it up, wait until earnings and if it doesn move in your favor sell the next strike under it so you have a spread. If is going to go down trade it that way. It is working with my bud trade, I have made up for the loss and more.

David S

Thanks Jeff and Brett. You have set a standard for me and I have become a better,smarter trader as a result. I think to push me into that top 10% I need to change my morning beverage of choice. Brett's is WM's, I'm guessing Jeff 's a red bull man.


in Santa Fe


I never had a position in CRS.

However, I hope you have a position in ANF and CMG.

ANF will hit $100 this year, and CMG's chart belong's in Murphy's book on Technical Analysis.

great stuff Jeff and Brett,,,thanks,,,this is a great blog,good people,great ideas, and support for each other,,,all thanks to Jeff,,the OPTIONS ORACLE,,,WE APPRECIATE YOU STARTING IT FOR US.

sorry,,forgot to sign that one


anyone have any thoughts on my puts on XHB? I'm begining to not like what I see.


brett, you finally made me hungry enough for chipotle that i took a trade yesterday. small OTM position with the intent to hold over earnings. so far so good.

I just closed a bearish position on KBH today. My exit was for a close above 45, but when it crossed it's previous high at 45.40 i decided i couldn't wait for the close. not sure if that was the best move to close intraday or if i should have waited to the end of day.

Anyone have any insight on exiting intraday like this. This is always the hardest thing for me when something goes against me hard intraday.


I feel the same way and am planning on exiting my trade on XHB,but trying to stick to my rules and wait till the end of day. However I don't it's wrong to exit early on KBH because all the homebuilders look similar and it looks bullish no matter how you look at it.


Well Brian, I kinda feel like a lurker too most of the time. I know I have a lot more to learn but I love coming to this sight and listening to not only what Jeff has to say every day but everybody else as well especially Brett and C&C. You guys are all great and this website has a wonderful vibe. I've been to a couple other trader blogger websites and in my opinion, nothing compares to this site. Thanks for all your insight!

pasadena, ca

Jeff and Brett,

I too trade for a living, although I feel I am undercapitalized, I am getting by right now. I know this going to be redundant, but you have to get your emotions under control to survive.

You must know your exit(s) or you will never get past the fear of losing: spend hours, days...years learning to plan your exits. I still screw up now and then, but I am often happy to take a small loss and say "next"

Jeff your blog and trading rooms have helped me survive this long, thank you. And of course......... GO SUNS!

Sorry forgot to sign that last comment,

Good job Brett..
Go Suns!


Thanks, Sarah. I also have rules to make all decisions at the end of the day and have been getting better about sticking with them and they definitely help. It has made a big difference for me.

But I am thinking -- there has to be a point at which i've got to stop the bleeding intraday if something makes a huge move against me. Would I let something just keep running the wrong way forever until end of day? If not, what would make me exit intraday?

I'm not sure i hit that point on KBH today, but I'm trying to figure that one out and figure out how to account for it in risk management.

Do you have anything like that in your rules, Sarah? Anyone else?

Has anyone heard any news on BNVI today?

Down 11%


Well my opinion on xhb, I have the put too. I see all the homebuilder stocks pushing against resistance and not braking it yet. Therefore, if you get a definite close over the line, I would get out, but personally I will wait the market needs to take a breather soon and maybe when it does these stocks will continue on the way down.

Patience, lines are meant to be drawn with a marker not a pencil. Also look at it this way you presently have a small loss the additional loss you may endure to get confirmation is worth the risk of waiting to get the right answer?

David S

Sorry I couldn't write for a while, I had to go out and buy some tissues after being overcome by emotion.

________________________Group Hug, everyone__________________________

Jeff, all I can do is add to the emotional outpouring on today's blog. We so appreciate this blog and all you have done to update it... and of course the Marketcast. Unbelieveable (as someone I know says.)

Brett, it's OK man. We all know that picture isn't you, because cavemen wear loincloths. And they don't know how to fashion glasses, they just bump into stuff. Sleep well, my friend. We don't believe it's you.

I'm getting hammered today on HMIN. I'm pretty sure that one will be in the smouldering wreckage pile this afternoon.

Tim, I am getting better about not exiting intraday. I find it's like going to the casino. If you're holding 13 it's really hard not to take another card... but the odds are against you if the dealer's holding certain cards. Same thing intraday. I have seen a good number of times that things tank during the day and then rebound late in the day as the buyers come out from under their rocks. There are going to be times that you should have gotten out early, but I have found that there are MORE times when it pays to stay the course. I'm pretty sure I'll be licking my wounds on XBH and HMIN today... but I'm going to wait until at least 2:00. I've got a Dr appointment at 3:00 so I've got to be out of the house by 2:15. I'd rather wait until 3:45... but what can you do?

Chris and Catherine


My rules are to trade at the end of day,unless something dramatic tells me otherwise(such as 2/27) then maybe mid day. i remember from Stacey A.'s class that 2:30pm is a pivot point in the day, as well as Shadow Trader on TOS talks about the 11am reversal period. Overall I agree w/ C&C. But if there is one thing to keep a close eye if you're going to enter or exit early is volume, if it is high then I would consider an early move.

Meanwhile I closely watch the homebuilders and wonder if after the news on new home sales yesterday that their getting a lift.


HWCC taking off Thanks Jeff!!!

Take a look at ACAS

David S


be gentle.

I'm going to get a burrito at CMG. Let's get the rally going.

Brett, I am proud of you and you are an inspiration. I couldn't find a picture of a HOG (not Harley) to put up there of myself. I've mucked around in the mud a long time trying to improve my trading. It's not a prety bio I can tell you that.

Anyway, I give... what the hell is the movie ?

I own ANF as a hedge agains my daughters spending habits. I hope it gets to $ 100 before their jeans do.

I threw out MRO and SUN as support bounces...hope some of you joined in on that. BUCY keeps on chugging. I did take CRS an will probably get booted on it by days end...

C&C if you don't like your doctor I've got a great one. His motto is, "Those last three days in the nursing home aren't going to be a lot of fun." Enjoy today...


thanks for all the laughs Chris

thanks for hwcc Jeff


That candle on CMG actually looks like a burrito today.


Thanks everyone for the thoughts on intraday exiting. I agree. In my short history of trading, I am getting the clear picture that more times than not, waiting to end of day is best. I jumped the gun today on KBH because it was such a strong quick more that took me off guard. I am regretting it already as it is looking like it's going to hold resistance. Who knows if it's still going down, but i am disappointed that I broke my rule on that one.

Oh well, another mistake to learn from. Thanks for all of the support everyone.

On the positive side, I have HWCC and CMG to cheer me up.

oh, and i still have a call vertical i sold on XHB so i'm still looking for that downturn sometime between now and may expiration!

As an example... I was thinking this morning that TSO had run it's course yesterday. It's way up there and I figured it'd do some retracing now. This morning it opened down about 1% and I thought "Self"... (because that's what I call myself)... "I should sell that puppy." But then I remembered my buying and selling rules and WHACK!!!! Catherine ran me over with the car and I had to spend the day in the hospital. Now... TSO is up $2.50 and it'll cover my hospital bills. How perfect can life get? Now if I could just get pushed out of an airplane or something HMIN might recover.

Actually today is a good lesson. Everyone gather around the campfire and I'll tell you a little story. There once was a time where the housing industry was getting beat up real bad. A boy (we'll just call him.... Brett.... no, no, let's call him Chris) thought this would be a good industry to short and bought 3 (count 'em three) puts on three different companies in this industry the day before the industry rebounded. Didn't even spend his money wisely, either. Bought (as we say in the business) Willy Nilly.

The next day he got a big tummy ache. And his wife ran him over with the car.

The moral of the story... DON'T BUY ON EMOTION!!! How many times do I have to say it?

Chris and Catherine
PS only the names are true. The author may have taken some artistic license in the storyline to enhance the real life situation. Catherine would never hit me with the car.

On purpose.

Last example, I promise. Look at LCC today. I held it over earnings and it took off this morning. Almost got out as it looked ready to break it's trend. Stayed in and now (2:00 PM) it's continuing it's downward slither. Rejoyce!!!

I'm off to the doc. Jamie thanks for the words of encouragement. I hear the rubber gloves snapping. Does anyone know what that means?

Chris and Catherine

This is almost too funny...I'm sitting here shaking my head.....I have been hoping the housing/real estate market would start rebounding soon (simply b/c I own investment property) and as soon as i finally give in and say to myself, "damn it, looks like I better quit fighting this down trend and just suck it up and hop on" and oh my look what happens....XHB, HOV, KBH, etc.... all up today....go figure....i should of bought some homebuilder puts months ago...maybe then I could get rid of this condo with a nice profit....

Tonya w
daytona beach

Wow, I am out for half a day and look what happens! Jeff with what happened to my account while I was out your blog was perfect. I am not one to give up on anything. I am starting a new business two so have double the challenges to not give up. Brett and Jeff (and ALL others) thanks so much for your kindness and patience in answering questions from someone that just started trading real money in January. Today was not a good day for our account as only HWCC did me proud. I think I see a study of Bob coming in the future as both my calls and puts were down and three stopped out today.
Thanks and sorry I was late to the party...

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About me

  • I'm Option Addict
  • From Saratoga Springs, Utah, United States
  • I am a professional trader and an instructor for Investools. I've had relations with the markets for 9 years. Born in Concord, CA, but reside in Saratoga Springs, Utah. Father of THREE, Husband of one.
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