- Written by Dave Meldeau
After what many are calling a turning point in the early days of the Trump administration, the Markets are breaking records once again. But is it a good thing for us Option Traders? Let's take a closer look.
President Trump addressed Congress last night, and the Markets are responding. As I write this, we are up over 300 points on the Dow, which is looking to finish at a remarkable 21,000+ today. So what is behind this move? Well, many don't realize that we have the first true Businessman running the country. Yes, the Bush family was involved in the oil and sports businesses, but they were also Politicians. Sure, some Presidents owned farms or law firms, but that is nothing compared to what we have here. So, it is really not that big a surprise that the Markets would react positively. But will it continue?
A continuation of this Market Rally is certainly something no one wants to bet on, or bet against. It is inevitable that the Markets will fall at some point in the next 4 years. While I do not give all the credit to the sitting President for a rally, I also do not blame them for a tumble, unless of course they specifically say or do something to cause it. That was the case today. The pro-business/ pro-America comments made by the President had an immediate impact on Investor sentiment, and thus stocks. Option prices spiked early in the day but have settled down, which is a normal response during a Bullish Market like we have here.
While I firmly believe we are due for some profit taking, I for one am not putting my money on it. We will continue to be non-directional, or in some cases hedged-directional, and grow our portfolios regardless of the Market direction. On Monday alone, our trades netted a 24% overall return, and our trades today are positioned to add to that healthily.
If you are not on board now, what are you waiting for? This is the best time ever to be investing in Options, and we are always here to help when you are ready to learn.