Hmm.. I think he’ll post another short trade idea soon.. And keep doing it like he did the past so many weeks ( until it works out) :).. Am staying neutral though for now.. will wait for cpi and fed kabooki theatre to pass

The QQQ is now going up 1 to 2% a day. I’m sure we’ll eventually retrace 2% but who knows when. I think you’re on your own now, Randy has no clue so won’t be posting much actionable guidance.

Was was buy 431 puts expiring on Friday. I enter suing divergent highs and lows on the 5min chart. To exit I look at the 1min cart. The price normally bounces off of the 50SMA and the 200SMA.

If there is a larger drop after I purchase a put, I use the 50SMA as a guidline. As long as the price is under, I let it ride. This strategy sometimes yield 700% in a day.

Unless you purchase at the absolute wrong moment, you could get in with a linked closing order for a 5% gain and get closed out with a decent profit almost every time.

Exactly right Jeff.
Way too much bearishness out there despite the sentiment indicators.

Yes I can help. Start a company, hire me, match up all my losses against your profits and you wont have to pay a dime ;)

But i think you can talk to a tax accountant to help you with ideas.. for example – you can say your trading desk/office/ AC/ heating is a business expense and reduce your profits. Your partner/ spouse can be your ‘secretary’ and her salary can be deducted too (dont get too fancy with all this as it can also be tax fraud.. hence the accountant). Also if you trade futures and options on futures its a lower tax rate than regular securities

Which calls/puts do you buy? How much do you risk? How do you know when to enter and exit?

I wish I had your problem. I’d love to owe a lot of taxes, because that would mean I was actually profitable. I’ve lost so much money in the last 6 years, however, that I’ll have capital loss carryovers for many many years to come.
As far as paying less taxes by incorporating yourself into a business or something like that, I’ve heard that it’s usually not worth the trouble. Also know that short-term trades are taxed at a higher rate than long-term. One way around that is to use instruments, such as futures contracts, that are taxed partially as short-term, partially as long-term, despite the length of the actual trade.

Thanks for the suggestion.

I was playing SPY puts/calls expiring today. The 5 min chart shows pretty clear entries and exits. The charting works at all time frames. Just fewer whipsaws with longer time periods

https://i.imgur.com/2l0abHN.jpg

Great perspective Jeff (both posts). Thanks for sharing