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Heavy Loss Trading Options!

By Andrew Aziz  |  
Andrew's Newsletter  |  
Sep 18, 2023

Dear Traders,

Today marks a historic day, reminiscent of the collapse of Lehman Brothers that triggered the 2008 financial crisis. While I wasn’t trading back then, I can imagine it was a terrifying time for investors and financial market traders, especially if you found yourself on the wrong side of the trade.

Today, the stock market experienced a pullback, with Nasdaq down almost 2%, SPY down 1.2%, and Dow Jones dropping about 1%. The decline in technology companies weighed heavily on the broader market, erasing gains made earlier this week.

Personally, I had an amazing trade on Tesla and managed a very nice Credit Put Spread. Unfortunately, I entered two losing trades on $NVDA and $AMD.

I’m relatively new to spread trading, and there’s still a lot for me to learn, but I’m the type of person who learns on the job. Today’s losses could amount to $4,000 to $5,000 on these two trades. If you’d like to learn how I trade, understand my thought process, and discover how I could have avoided these losses, you can watch my recap posted here.

What’s in store for the economy next week when the Fed’s meeting takes place?

The Federal Reserve seems to be approaching the end of its tightening cycle, and some believe they may have already reached that point. While the latest inflation report came in slightly higher than expected, it doesn’t seem to concern investors much. They expect Fed Chair Jerome Powell to maintain the status quo at next week’s policy meeting and not raise interest rates.

Bond traders are already factoring in nearly a 1% rate cut next year, aligning with the Fed’s current dot-plot projections. However, it’s easier for the Fed to halt rate hikes than it is to initiate rate cuts. For rates to come down, we would need to see some economic weakness alongside a clear improvement in inflation.

Last but not least, as many of you know, I have a Ph.D. in chemical engineering and I am passionate about education, finance, and helping individuals achieve their trading goals. I also experienced the ups and downs of the financial markets and felt the pain of losing my hard-earned cash because of a lack of investment and trading knowledge.

That’s why I’ve dedicated my career to providing aspiring traders with the knowledge, support, and resources they need to succeed. Our back-to-school sale is a great opportunity to jumpstart your trading journey. With our membership, you’ll access a comprehensive educational platform covering everything from the basics of trading to technical analysis, and risk management. Our mentors like Paras, Thor, Ardi, and Aiman are also here to support you every step of the way. Join our community for 50% off and invest in your education to grow and make a secondary income.

To your success,