After another successful credit spread last month I was primed and ready to look for a May trade. Normally after Expiration Friday I chill over the weekend and don't even look at anything financial related. It's just nice to to step away sometimes. But last weekend was a different. It seemed that as soon as I knew my April spread was a winner I was hard charging looking for next months trade. After spending an hour or so trolling through possibilities I wasn't able to come up with anything that fit my criteria. Instead of just chilling out and waiting until this week to look for a good trade I kinda freaked out! I felt like I HAD to find something NOW! As I look back at it, I was really stressing myself out.
Anyone who has ever traded for any period of time will tell you that trading is stressful. I describe it as a mixture of fear and adrenaline. However, getting all worked up like I did is totally unnecessary. I have my rules in place to avoid all that. If there aren't any trades to be made today, then wait until tomorrow or next week. If you end up not trading for a month SO WHAT! It's better to be on the sidelines for a month than to force a bad trade and regret it later. I've found that you have to keep your mind right if you want to have a chance of being a successful trader. That's my advice for the week.
Now, as for May's credit spread. I entered an 860/870 Bear Call Spread on Google. If' you've read my blog you would know that as long as Google stays below 860 between now and the third Friday of May I'll get to keep all my premium. So far the probabilities are looking pretty good. We'll see how things progress during the month. Have a good weekend everyone!
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