Mid-Week Market Update
NVDA 0.00%↑ just came and ate everyone’s lunch and I love to see it even though I had some OTM risk on from last week.
The move priced in and the thing that I really enjoy is watching the day trading groups get smoked out on their directional bets the day before.
Options trading has exploded and with that the influx of wannabe traders and there’s very few things that are more annoying that seeing people pretend they know what they’re talking about.
The CBOE 0.00%↑ - aka the Degen index is up over +100% since 2020.
The market-makers win yet again and another reason why I’ve shifted so far away from directional short-term trading in the last 3 years. It still works but a lot of it has been edged out esp. when you are trying to throw around size without getting a P&L swing that would make anyone sick.
So now I just trade it small and it’s maybe 5% of what I do anymore, really for cash flow.
To be clear, I ran a lot of directional options from 2011-2017 - I racked up $350K in 18 months from 14/15.
But the past few years, really since 2020, the shift to more long/short equity and using DITM/LEAPs has been the move.
Things get crowded so you have to move around the dance floor and that’s what I try to do.
Below is the full mid-week recap for subscribers including a note on NVDA 0.00%↑.