5/27/25 Recap

The SPY came down and tested the 8 ema this morning(dark blue) and so far it has bounced higher. Friday we had that gap down on Trump threatening 50% tariffs on the EU and he walked back that threat just a few days later causing this gap up. You’ll notice friday we held that confluence of moving averages perfectly. The SPY came right into that 100 and 200 day and they did their job as support. There really isn’t much to say here other than we retested a big spot friday and held, as long as that 200 day is holding, we are in an uptrend. That gap below 570 is concerning and I’m sure it will fill at some point in the future, but for now we’re riding over all the key moving averages and barring some Trump tweet sending us lower, right now market participants are willing buyers. Until we push up over those 613 highs from earlier in the year there is always the possibility this is just a lower high, so keep that in mind and just stay long over the 200 day, and close out your longs on a close below that.

My Open Book

Alot of you are new here and this is where I share my open positions everyday. This is more just a reference point than anything else on how I look at the data and position myself around it. You can always see every trade I took in the volume on that session. This is my trading book, this isn’t my long term investments so I take aggressive shots in here as I’ve grown this book the last 3 years of doing this. I use alot of leverage, I really work my margin, but I’m also quick to cut trades if they go against me. I don’t suggest you copy me, you learn nothing from that. Look at why I took trades and decide how to apply that to your book. There’s a great resource of the community discord which has a link in the welcome email you got, use that to discuss more about the strategies of using option flow to guide you. We just passed 1,500 people in there this weekend.

Personally I try to look for bullish flow and I try to position myself around it. You see upside calls flowing in maybe you sell puts lower. Personally I am a put seller, I try to sell puts into gaps, I try to trade only names of strength. I do have a slight obsession with MSTR because the vol is so high it is an option sellers dream stock considering I am bullish on the underlying of bitcoin. Otherwise I try to be in the top trending names in the rankings in my database. I use short puts to build up cash in my book as long as we’re in an uptrend which we are for the moment. I try to use longer term leap short puts for most as I really don’t want to get assigned, I just want to generate some money with my leverage as assignment risk is low. Again, I’m nuts, you shouldn’t be, I would suggest cash secured puts if you’re going to actually sell puts in your book. I don’t have to answer to anyone but me so these are the risks I take. I do suggest you keep a separate trading book so you can be more free with your risk.

Trades I Added Today

1. I sold 100 37.5 puts on FLR in June, I wrote this one up friday and I sold these at the open today, it had a few more bullish trades today and just looks great