How Goldman Sachs & JPM Morgan Created A Good Short Opportunity in $SRPT

September 24th, 2016 Our #1 trading idea for Friday was SRPT. It sold $300 million of shares in a secondary offering via Goldman Sachs and JP Morgan. Normally, biotech secondaries are excellent long set ups. The prior week I had been long AERI following its secondary offering and it traded 30%+ higher in a few days. But this time was different. I discussed why SRPT was likely a good short trade candidate. Why was this time different? Watch our AM Meeting below. Free Trial info HERE. Below how SRPT traded Friday after the market opened... Steven Spencer is the co-founder of SMB Capital and SMB University which provides Read more [...]

Trade Review–Shorting A Stock After Earnings $RHT

September 23rd, 2016 In this video I walk you through my thought process in developing a plan to short Red Hat following its earnings report. Each morning we develop trading plans for Stocks In Play. For more info sign up for a free trial which includes all of our trading tools and live position updates. Steven Spencer is the co-founder of SMB Capital and SMB University which provides trading education in stocks, options, forex and futures. He has traded professionally for 20 years. His email address is: [email protected] Steven Spencer is currently short RHT Read more [...]

Why I didn’t trade today

September 23rd, 2016 I didn't trade this morning.  I had ever intention to do so when I left the office last night.  I like the opportunity in FB TWTR SRPT SPY IWM for today's trading session.  So this was not a decision of a lack of trading opportunity.  I, personally, was not in an optimal state to trade.  And therefor, I benched myself. First, for those of you who have children, you might empathize with this next anecdote.  Three times last night, while in a dead sleep, my son approached my bed, leaned directly into my right ear and said, "DAD.........".  There were different iterations of what followed after DAD!, but each awoke me Read more [...]

Stay Within the Theme of the Trade

September 22nd, 2016 Every options strategy has a "theme"--the conditions under which it does poorly and the conditions under which it is successful. In this video, Seth Freudberg discusses the problem of abandoning the theme of a trade in the midst of the trade. A recent bearish butterfly trade is offered as a case in point. Read more [...]

What this new trader learned on Day 1 (166 lessons)

September 20th, 2016 Our new class started part I of their training this week, with the SMB Foundation. Some say, "The only way to learn how to trade is trade." Here is some evidence contrary to that position. One trainee with past trading experience sent me his notes, without solicitation, as to what he learned on Day 1 of our training program.  He participated in live classroom instruction, demo trading, interaction with traders on the desk, the archived Foundation training course, and access to our trading tools.  Here is what he learned: Get better every day Respect the markets Ask questions Only Read more [...]

Close The Gap!

September 20th, 2016               I work with a lot of traders trying to "make the turn" - that is the turn to consistently profitable. Among the plethora of issues preventing the average trader from being consistent, one has come up rather often recently. The gap. The gap between what you see as great opportunity at the end of the day, in hindsight; and what you were able to see at the hard right edge, in real time. The more we can close that gap, the better traders we will be. I'd like to highlight a few key solutions you can apply immediately to help you get there. (Spoiler alert: Read more [...]

SMBU’s Options Tribe Webinar: SMB Capital Options Desk Trader John Locke: Super Simple Spreads

September 20th, 2016 This week, John Locke returns to the Options Tribe to talk about his popular Super Simple Spreads strategy Read more [...]

Next Step to Improve Your Playbook

September 20th, 2016 Yesterday we talked about how market neutral options traders usually generate their best returns when directional equities traders are struggling to find opportunities. Here's one practical way you can begin to add market neutral options to your playbook. Action: Use midday as options time The best opportunities for short term equities trading is at the open and close of each session. The middle of the day is typically quieter and is when options traders actually like to negotiate their adjustments. Establishing a routine of thinking about market neutral options opportunities during the middle of the day is a great Read more [...]