Trading Desk gets a lesson in ATR

Daily Pit Stop [fstp, logo, header] Every day, big money makes a twenty MILLION dollar trading mistake - and the money they leave on the table is just waiting for us to pick it up. [Join Mark Sebastian in less than 15 minutes to talk about how you can leverage this mistake for your own options gains.]( [ag views, logo, header] Trading Desk gets a lesson in ATR I was explaining to traders in the Trading Desk today about “the range” to trade. As an option trader, what are you trading? Option Pit calculates a unique ATR vol (Average True Range) in our Edge Hunter sheets telling traders what the daily high/low underlying price volatility would be.  Mark and I liked the short term strangles, long a near the money call and put, in SPY, SPX or XSP. Those are all the S&P 500 ETF, Index and SPX- mini symbols. Looking below, SPY was running almost 19% ATR per day or $6 per day underlying price. Close to close or Realized Volatility was running ⅓ of the high/low. That means there was much more of a tradable range intraday than the close to close volatility implied. [fstp] As of this writing, the SPY strangles were paying well into the close, almost doubling in price. Once I understood what I was trading, it became less hard. - AG  [logo, pit profits] - Option Shopper - closed IWM Jan19 191 calls up 304% - Option Pit Mentoring - Jan19 480/470 strangles close for a 5% gain - EZ Button closed IBM Jan19 165/167.5 strangles for a 74% return - EZB  closed IBM Jan19 165/167.5 strangles for a 74% return Want to find YOUR winning fit? Give our Customer Care Team a call at [1-888-872-3301](tel:/1-888-872-3301) Monday-Friday from 9 a.m. - 5 p.m. EST. Or email them anytime at [support@optionpit.com](mailto:/support@optionpit.com)  [logo, header, fvix] How I Would Play The S&P Right Now In Today's Video We'll Cover - The Semiconductors leading the way up - Levels in the major indexes - Volatility and Bitcoin - How I Would Play SPX Right Now [fvix]( [Click Here To Watch The Video!]( - Mark  [fpip] Spend Time on Your Wellness Hi Shoppers, How are we all doing on those New Year’s resolutions? We are almost three weeks into 2024. Are you still going to the gym? Has your Dry January turned into Damp January (like mine has)? How about your carb and processed food intake, less than last year? I saw this quote and it really hit me as both myself and my husband are helping out with our parents while they are recovering from illness and surgeries. He is in south Texas and I have been in Arkansas since just after Thanksgiving. I did see him over Christmas for a couple of days. Don’t get me wrong, I am not complaining. We are both happy to help out where we can and it’s only temporary. The quote went something like this: If you don’t spend time on your wellness, you will be spending time on your illness. It is so true. We want to be healthy, strong, mobile, and self-sufficient old people. SPEND TIME ON YOUR WELLNESS. [On to my trade idea in The Mosaic Co (Ticker: MOS).]( - Licia   [glossary, logo] There are plenty of terms in the trading world that need explaining. The Option Pit Glossary is here to help. Today's phrase is:  Put Write- Selling a put, usually cash secured, in lieu of buying stock. The idea is to use the put premium collected as a yield like a dividend. [ftsp] All the Right Options. The Option Pit Team brings more than 150 years of experience to you every day. From the trading pits of Chicago to the world's largest banks to the halls of power in DC -- they've done it all. Now they’re collectively focused on one thing: making YOU a better, more profitable trader. Click the button below to schedule a call with our concierge Customer Care Team to find your best fit today. DISCLAIMER: FOR EDUCATIONAL AND INFORMATION PURPOSES ONLY; NOT INVESTMENT ADVICE. The materials presented from Option Pit LLC are for your informational and educational purposes only. 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