Roll Me Away...

I am so glad it's Friday, and that last nights event has come and gone. Now I can breathe a little easier and focus on much more important things. Like what I am going to eat for lunch, which on-the-go list I am going to play on my ipod, or whether I should go with a code red mountain dew, or a regular diet mountain dew.

I'll admit, with some changes taking place in the indices, the VIX, earnings season, and a busy schedule, I am trading at about 50% capacity that I normally do. My position size has been cut in half, and I have tried to reduce my exposure by selling a little more premium in some recent trades. Mostly legging into cal spreads/diagonal spreads on the real choppy trades I have out there, but at the same time leaving the big winners alone...GRMN, KRC, BSC, MTH, etc.

I also mentioned that this is a great time to take advantage of the intra-day ranges in the averages. E-mini's are the preferred day trading vehicle, followed by ETF's, and finally ETF options. I've mentioned my hesitance to everyone about day trading options, but if you are trading in penny wide markets that are extremely liquid, ETF options are the only way to go. Index options will kick you in the face with the wide spreads.

The reason E-mini's are the trade of choice is you get the same liquidity, great spreads, but you don't have to deal with implied volatility, theta, time value, etc. If you haven't traded them before, put on a few paper trades and give them a try. You need to be more system oriented when doing this, meaning if you are a discretionary trader, an emotional train wreck, or just thinking because you are not having success in the other markets that you want to try this one, forget about it. Finally, if you are going to day trade, have a goal of being settled in cash at the end of each trading day.

After a relaxing weekend I plan to get back into my normal swing and offer a few more videos, trade ideas, commentary, and the works. The Addict is back.

As a side note I am sporting the shirt around the office today. I wonder when I am going to get called into someones office.

PS- Chicago is almost here and I will be posting some ideas soon about a little meet and greet.

Recommendation: I couldn't find a better video that included my song of the day. My bad.

Long: Bob Seger

Short: Video footage of random car rides despite quality tunes

I would love to trade e-minis, or at least learn them. Don't have a clue where to even find them or chart them. Can you give us novices a little direction?

Thanks, Jeff - Love the song.
I've dabbled in day trading a bit. I'm actually pretty good at it - but I don't have time to do it regularly. I day traded SPY this morning & was wrong, but got out at my break-even. Good trade.
RAMBO! There's a bear with a big AAPL on it's butt! SHOOT IT!

:-) Pat

You have to have a pretty decent size amount of cash to day trade, correct?

Loved the random driving. Reminded me of driving to my grandma's in Kansas when we were little.

Have a great weekend and Grant and I will see you sometime at the beginning of next week. We'll have our OA gear in tow.


p.s. you'll have to tell Eric I'm a big fan of his as well!

Where in Kansas? I grew up there.
Enjoy your 3 day live.

I too am interested in trading E-mini's. I am not able to day trade now. When my children start school, I could manage the trades better. If I learn to trade them now, I could jump in when my youngest starts preschool.

Thanks for the great posts.



My dad lives in Mulvane (outside of Wichita) and my grandma lives in Caldwell. Single blinking light. No stop lights. Very small town on the Oklahoma border.


BSC CEO says things are worse than expected and lawsuits are coming.
The spooz is toying with the last line of support.


NOV in free fall. HOpe it stops here at 110.

GS also free falling. Too bad I just have that stupid spread.

Tried to get into AVB but the spread was about $1.50 or more for some strikes. No thank you.

Can somebody explain E Minis after the close?


Everything looks like it's free falling...


Wow - wish I had a GS put. Or a BSC put.
The big question: will there be an afternoon rally? My guess is no, because it's friday.

It's over. Give up.

You cannot compete against me. I'm smarter than you.

That's why your P&L is mostly L.

P (me) & L (you)

The Rogue is forever.


Here is the leading resource on the topic...

Start there and I will break it down some time next week.

I think POT and RIMM might be relative strength stocks. They are holding well. All my puts look great. BRY what a great pick Jeff and Eric. Burn, baby, burn.


Hi Fellow Addicts,

I am also interested in learning more
about daytrading e-mini futures. I called the IV Hotline but because they are not yet offering a Future's course (it is coming soon), the coach would tell me nothing except to try Google. I googled E-mini's and paid $47 for a course in daytrading them -printed up 77 pages. Ask me in a few days if it was worth it :).

My husband is on the road to recovery - thanks again for all the well-wishes and prayers.

Jeff & other Chicago goers-

My sister-in-law just got back from the windy city (she is very up on the scene) and gave me a list of suggestions for bars and food:

Howl at the Moon - Dueling piano bar located @ Hubbard & Clark St. This would be a great time with a group of OA's out on the town.

O'Callaghans - across from Howl - late night irish pub

Mother's on Hubbard - across & down from Howl - sports bar

Blue Chicao - Clark St. - great blues, no cover on Monday nights

Hugo's Frog Bar/Gibson's Steakhouse - N. Rush - Great food and a little dressy atmosphere. If you attend she recommends the filet sliders!

Cafe' Iberico - N. LaSalle - spanish tapas - try the pupo a la planchetta

Topolo - Clark & Hubbard

Also if you are interested in the architectural cruises through downtown (via boat) check out
Book early ( and online for a better price) as I have looked on line and many of the of cruises are already booked.

Have a great weekend. I will be doing a lot of studing to prepare for next week. I feel I am not prepared for this market and don't like getting left behind.

Christine NY

Judy - glad to hear your husband's doing better. What a relief!

:-) Pat


It's good to hear that your husband is doing better. I hope that your granddaughter is better as well. It is your granddaughter, correct?


That's great news Judy!


Glad to hear it, Judy!

Judy, that's good news!!

Wow....wish I had the balls to step in and buy some stuff here at the close but this is really ugly.
Probably just as well I am a wimp.


you must be a permabear
we know how to play both sides,,we are not arrogant like you,,i know i and others have made huge money on both sides

what makes you think we are all just blindly bullish,,,you must not read the threads,,a lot of us have been in the bsc put for weeks,,,
we are also in other banking and real estate puts,,,,,,,so unlike you we make money we the money is to be made

really dont like your attitude and comments,,,go away


Wow, Liz,
What a good pick. I didn't get into AVB. It was on my list to watch. It moved great. Too late to get in now. But hope you were already in it. That's what happens when you have a busy day and don't keep up with your watch list.



wonderful news!!!!!


Brett ... are you using a support line at $55 on DRYS? I have been following this for days and today looks like a couple of days of fair volume and it continues to hang above $56 ... even with the market at $200 down .... Thoughts? and thanks!


Glad to hear things are better. We are all concerned for you and your husband.


I vote for howl at the moon. If Amber hears about a Piano Bar, she will refuse anything other than that.


Thanks, but I think that you are referring to Sue's niece :)


How are your father and niece doing?
Hope that they are improving as well.

Glad to hear the good news.
Good to have you back.
Is the market open five more minutes or 35? I always forget.


Hey, Liz - thanks for the reminder on AVB. Got in this morning & it's done great!

:-) Pat

Roguester - thanks to you too. I took a lot of your money today. Now tuck your tail between your legs & crawl away.

What a great day to be a Bear. Thanks Jeff and Eric for teaching us diversity.


I'm glad CNBC is finally declared that they are bearish on Bear Sterns. This probably means it's time to take a profit in those puts.

Raimo, good rhyme.

Judy, good news.

Rogue, good bye, get out. Your name fits!

Did that rogue dumb ass mentioned something about walking on four legs at one point.

A leech doesn't have legs.

Because of the contributors to this Blog

Every one of the options in my portfolio was profitable today!


Whew...that was exciting. I guess I must be more heavily bearish because today was the best day I've had all week.

Folks, a little advice on how to deal with the likes of rogues....I've been active in online communities for 20 years now and I've seen it all. Best thing to do is nothing. Do not engage. he thrives on attention, much like a child and taking the time to compose a poem or even a thoughtful response is a waste of bandwidth, not to mention your valuable time. 'Fonely we had a bozo filter we wouldn't have to read his drivel but absent that, just scroll by and ignore. Do not engage. He will get bored and have his tantrums in someone else's sandbox eventually.

Now I'm gonna bang those drums til they bleed! (It's the best thing about Fridays)

excellent observation, Jeff. I'm not in Bear Sterns, but I am in MER. I think it's time to take half off the table. *sigh* It's kinda sad to see such a successful trade going away.

And thanks to you, Jeff, and to everyone else on the blog. My trading has gone from abysmal to almost adequate! Woohoo!
Seriously, you have all helped me more than you know. "Thanks" just doesn't seem to be a big enough word.

:-) Pat

Same here. I am pretty bearish except one call and a few stock plays. It is one of the best days I've had in a while. I never knew I could get so excited watching the market tank. I could not have experienced this if not for Jeff and Eric's teachings.
Did anyone notice the major support lines most of the indices broke today. Next week will be very, very interesting.


Do you think there will be BIG Christmas bonuses this year at the brokerage firms?? Maybe they can loan them back!

Clean cups!!


great to see so many positive comments on a big down day in the mkts. thanks jeff and everyone for all that is shared here.

c-trp run
as jeff would say....ALPHA

have a great weekend all


A little while ago I listened to a webinar on trading e-mini futures from:
It looked very thorough and interesting but I wanted to first learn everything I could from my PHD program. With the huge amount of information and time to learn it a real problem for many people, I can see how a tightly focused course where you don't have to learn about fundamentals, theta, etc. could be beneficial in getting people up to speed and making money more quickly.

I felt badly the other day when I was giddy with how my puts were performing on CFC. I attended an Investools local group meeting and the presenter was lamenting on how the stock was sinking fast and I jumped up and pumped my fist "yeah baby, it's going down!!!" Turns out he works for Country Wide and that's his 401k going up in smoke. My bad. How can you advise someone to sell their own company stock and buy puts against it? Tough to do but better than watching your financial future go down the drain.
Stan Lake

I just began reading this blog today. I'm not an Investools student, just an average guy who got his @$$ handed to him this week. My broker is telling me to buy more and dollar cost average. My better judgement is telling me to get out before I lose anymore money. So I went to the local gentleman's club on Friday to drown my sorrows and the rest of my available credit when I met an ahem "entertainer" who said she was a PhD student in this Investools program and that she made a lot of money this week purchasing puts on homebuilders. I didn't believe her at first, but as we talked for the next ugh five hours she really seemed to know what she was doing and she got it from this PhD program, her Investools coach, and this blog. So, my question to everyone is: Do you feel that the money you spent on Investools is worth has been worth it? There aren't very many objective reviews on the company when you google it. Seems like most of the people on some sites say its a rip off. I'm speculating most of my replies on here will be positive. Or am I just a fool who spent $300/hour on financial advise from a stripper who never even took her top off? No offense Avalon if you are reading this, you're a doll. I hope you go buy more of your puts.

Who SOLD OUT a piece of national treasure vital to our survival, to Russians, dirt cheap? On paragraph 4.

Watch out SWC on monday for earnings release after hour. Crooks knocked down SWC from $16.47 to $8.56 in less than 3 months, for no good reason. Maybe they want to sell the remainder to Russians cheap?

Deeply oversold, I expect a blowout SWC quarterly earning, and from here SWC MUST have a dramatic reversal and a great rally on the good earnings. Don't let go of the opportunity!

Thanks Jeff for putting up the Bob Seger Video! I dug out all my Bob Seger cassettes and listened to them all weekend. Reminded of the days crisscrossing around the country in my Van, playing Bob Seger. My Heart is now singing Roll Me Away!

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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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