Even with the afternoon rally, the markets are coming in a little light for traders on Monday.
Aside from speculation on a Tesla stock split — so the company can pay a dividend to shareholders — driving some buzz in the tech sector, trading volumes have been lower.
A bright spot for our strategies has been a nice pop in Twitter for Weekly Blitz Alerts…
Sleepy days like this with no trend in the indexes are a great time for options traders to burn up an account.
What happens is a lot of people want to buy options in the opening 30 minutes because they're excited to get back trading after the weekend…
And when there isn’t much to go on, it’s a lot easier to overreact to a move from fear of missing out — aka “FOMO.”
That’s when you get hit by something called options premium burn…
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