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No, that’s not a typo…I am talking about SPY, the S&P 500 ETF.

As my Trading Floor members know very well, I like to trade SPY options when the overall market experiences range expansion and volatility. 

In a way, options trading reminds me of penny stocks.

That’s because trading options require less capital than stocks, and if I take advantage of the right options set up and trade, the results might be similar to that of a big penny stock mover.

Just like this 92% gain on SPY

How do I do this?

When I trade options in the SPY, I look for areas where the stock might be short-term oversold or overbought.

I find those areas by doing live market analysis in the chatroom and analyzing the intraday charts.

To decide whether to go long and buy calls or go short and buy puts, I will use Bollinger bands, Fibonacci retracement, and volume analysis.

Here’s a screenshot from my trading journal, showing my entries and exits on the SPY chart:

The best part: I did it live, as I always do, in front of my members in the Trading Floor chatroom, and posted my entries and exits in the chat in real-time:

The Bottom Line

While I’m known for being a penny stock guru, I don’t only trade penny stocks.

I love to expose my members to different strategies relevant to other market conditions.

So if an options trade in SPY presents a better risk: reward opportunity than a penny stock trade, I will certainly go for the SPY trade.

Do you ever trade SPY or options?

Let me know. I’d love to hear from you.

Author: Jeff Williams

Jeff Williams is a full-time day trader with over 15 years experience. Thousands of entry-level and experienced traders alike – day-traders and swing-trade small cap stock traders – credit Jeff with guiding them to turning small accounts into big accounts.

Jeff’s "Small Account Challenge" shows people how to transform accounts from a few thousand dollars into $25k, $50k or even $100k.

Many traders and investors might not be happy right now.

I mean, the markets have been crashing and unforgiving, to say the least.

However, that has not stopped me from finding high-quality long setups!

Because regardless of whether the market is going up, down, or sideways,

My goal is to always perform as a trader.

On top of that, one of my main objectives as a guru is to alert my members to my highest quality setups and ideas that might present a significant opportunity, EVEN IF the overall market is crashing.

How do I do that?

I scan for penny stocks that are not correlated to the overall market and are trading independently.

So out there, it might feel like the world is ending, but in The Trading Floor, it’s been business as usual.

Let me show you what I mean:

CYN chart

On Monday, I alerted my members to CYN after the stock had news and closed the previous week up 133.91%. Compliance

As part of that alert, I explained why I liked CYN,  what I was looking for to get long, and where I thought the stock could go.

At the time of my alert, CYN was trading at $2.69.

Here’s a screenshot from the alert:

screenshot

Two days later and BOOM, the stock traded to $4.39, or up 63% from the time of my alert. Even though I wasn’t able to get into this trade based because I couldn’t get my entrance price, I’m still excited that I was on the right track for a stock with a huge upwards move.

The Bottom Line

Look, trading can be hugely challenging, especially if someone doesn’t have the experience to navigate a changing and volatile market and environment.

I’ve been there… I’ve paid my dues and made the mistakes, and now, with my knowledge and experience, I can find stocks that are bucking the market’s overall trend and provide opportunities on the long side.

That’s what I’m all about, and that’s what I do daily with my members in The Trading Floor.

Author: Jeff Williams

Jeff Williams is a full-time day trader with over 15 years experience. Thousands of entry-level and experienced traders alike – day-traders and swing-trade small cap stock traders – credit Jeff with guiding them to turning small accounts into big accounts.

Jeff’s "Small Account Challenge" shows people how to transform accounts from a few thousand dollars into $25k, $50k or even $100k.

I have something exciting to share with you today!

So, I recently discussed a trade that I took and explained why I love trading penny stocks.

But today, I’m going to do something different.

Today, I’m going to give you an inside look.

I’m going to share my specific game plan and thoughts with you, on a stock that has caught my eye.

I have been stalking this stock for some time, and now I think it might be gearing up for a breakout.

Typically, I only share my watch lists, thoughts, and game plans with my members…but today is your lucky day!

China SXT Pharmaceuticals, Inc. (SXTC) 

SXTC was moving yesterday as the stock closed green on the day and right at the 50d moving average.

What I like about SXTC is how the stock has held that $0.17 area for a few months now, and bucked the trend of the overall market.

The long sideways action in the stock has also led to the 50d and 20d moving averages contracting, flattening, and trading within $0.02 of one another.

I think that this contraction might be leading to an expansion.

Here’s my specific game plan:

I’m stalking the 20d MA around $0.22 for a possible entry.

If the stock can push above that area and hold, I’ll be targeting a move towards $0.25 – $0.30 to take profits.

While my Trading Floor members will receive live updates and game plans and get to watch me trade live every day, I have not forgotten about you!

I hope that you enjoyed this inside look at my game plan for a stock that’s high on my watch list.

Author: Jeff Williams

Jeff Williams is a full-time day trader with over 15 years experience. Thousands of entry-level and experienced traders alike – day-traders and swing-trade small cap stock traders – credit Jeff with guiding them to turning small accounts into big accounts.

Jeff’s "Small Account Challenge" shows people how to transform accounts from a few thousand dollars into $25k, $50k or even $100k.

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