Days To Expiration…

Hey 5-Star Trader,

It is impossible for us to know exactly what each day in the market will bring us, but there are certain days of the year that we know we should pay extra special attention to. Tomorrow is one of those days. Why? Because it’s quadruple witching hour. 

What is quadruple witching hour?

Witching hour is a market phenomenon that only happens four times a year. This event occurs on the third Friday of March, June, September, and December when stock options, stock index futures, and stock index options all expire within the last hour of the market.

During witching week we typically see choppy behavior and trades you take on only have a few days until expiration. As a directional trader whose trades last an average of a few weeks, this is typically one of my least favorite events.

If you do choose to trade during this time, I would look for large-cap and high volume tickers with a lot of options activity. Some names would include Amazon (AMZN), Tesla (TSLA), Netflix (NFLX), or Facebook (FB).

Whether you are in or out this week, I suggest proceeding with caution, as the next few days could be unpredictable.

Up Next...

When a Ticker Makes Targets

Hey Traders! On Monday, I sent you a video about my short-term setup in Tesla, along with my $250 price target. You can check it out in the Tweet below… Since then, the squeezes I noted fired to the long side, and Tesla traded directly to my Fibonacci price target at the 1.272% extension level. … Read more

Read More

A Trade Setup in TSLA

Good morning, traders! The Nasdaq futures are choppy at 16,000 after making quite the run. So, what’s next? Looking for the next round of setups, of course! When tickers and indexes get sticky, squeezes will start to consolidate. Those squeezes generally occur on the lower time frames first. When those squeezes fire, they can either … Read more

Read More

The Microsoft Effect

Hey traders! Microsoft made a new, all-time high yesterday and may very well take the Nasdaq along for the ride. What is next to come in Microsoft, the Nasdaq, and more? Check out my video update below:

Read More

Subscribe Today!

Want my up-to-date analysis, setups, top trading tips, and more? Be a Five Star trader, and join my free newsletter today!

Sign Up Now
all-as-seen-on-logos