We had another great educational webinar this afternoon, so thanks to everyone who joined our huge crowd of participants. I covered one of my favorite options income strategies, option flow, a technical resource that every options trader must understand and follow. Well, only if you like a big pay day!
I started off with a discussion of the markets and how it appears were are again in modest correction mode. Certainly some groups are not leading us any longer, such as biotech. Yet, that rotation may just be a healthy move. Big cap names have been strong lately.
I introduced my good friend and flow master David Attardi, who joined me in talking about the flow, how to identify and find the best ideas. It’s not perfect but the option flow is a key to finding great short term trade ideas.
I blogged about option flow earlier this week, so if you missed it, here’s a quick primer on option flow:
Option flow tracks high volume options trades. Why bother following those trades? Because that’s where the big money from institutional investors is going, and if they like something, we oftentimes like it, too.
Now, this might sound like a complete contradiction from my usual mantra to always rely on the charts and technicals before making a move, but – and you knew there was a but coming – sometimes the flow trumps the chart.
Take a listen to today’s webinar to hear why!
In addition to our great option flow discussion – some really great questions were asked by our participants – I covered recent market action, earnings (what on Earth is going on over at Twitter?), a few charts I am keeping my eye on, and a couple of trade ideas that we put into play this week.