Trade Strategy 8.14.13 “Options Expiry”

It’s option expiry this week…In order to cause the most “pain” to both Call and Put owners would be to keep price locked within a relatively narrow range forcing decay in time premium.

The upper and lower price boundaries that we have seen during past week remain intact…Upper Zone..1694 – 96   Lower Zone  1675 – 80. Until price can penetrate the upper edge and hold or violate the lower edge and hold, price action will remain “locked”. The 3D CPZ zone is narrowing between 1686 – 88…which is where price is currently in GBX (8:15 am).

So the Strategy remains the same as recent action….Buy Dips near lower edge…Sell Rips near upper edge…Until the balance of supply and demand shift.

As always, stay disciplined and manage risk aggressively.

Good Trading….David

Habitude Three
I am willing to accept loss. Losing is an integral part of the process. I know and accept that individual losses and losing periods will happen. They are endemic to trading. I do not like loss. I do not expect loss. I simply accept loss as a cost of doing business.


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