🐺How to Navigate This Wild Week of Mag 7 Earnings...

Hey there! My name is Jordan and I write about trading for the WOLF Financial newsletter. If you want more trading tips and tricks, I guarantee you’ll enjoy my content on 𝕏, @AcetheKidTA. 

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What a massive week in the market! 5 of the Mag 7 companies reported earnings this week and we had tons of economic data such as GDP, PCE, Unemployment, and NFP.

This was a great week to step back, in my opinion. Letting earnings play out data settle in provides a more stable trading environment versus trying to catch the reaction of these plays.

The only way I’ve personally been capturing these plays is with scalping futures. I swung one position over the weekend last week and didn’t open a single options play throughout last week.

Why? Because I have no edge with options right now, so if I want to take advantage of the movement, it has to be with futures.

I used to try and scalp trade options, but it never really worked for me. Keep reading to see how I take advantage of all market environments.

Options Trading vs Futures Trading

As similar as they may seem, options trading and futures trading are very different.

You’ve probably seen many day traders switch to futures from options and for a very good reason.

Futures doesn’t have “The Greeks” which means Theta doesn’t exist in futures. This means you have no decay on the contracts you are trading, which can be very helpful when day trading or scalping.

However, for bigger trades, I find options trading to be more viable.

When scalping, I like to take advantage of futures and not be susceptible to theta decay, but when I want to take a swing trade and catch a big move, I have no reason to trade futures.

Options are much more viable because of “The Greeks.” Delta and gamma are working for you, making it easier to make more money faster, each dollar the underlying stock goes up.

This makes it much more viable for me to swing trade options and day trade or scalp futures.

This also makes it very easy for me to take advantage of any environment in front of me.

For example, this past week. I knew that the Implied Volatility on options would be crazy, so I didn’t really have much desire to put much risk with options.

However, I was happy to put on risk with futures, because I knew that I could manage the environment in front of me with futures and not options.

For me, it’s all about knowing the environment I’m in and whether or not I have an edge in said environment or not.

I hope this helped open some eyes to different styles of trading. Please don’t make the mistake I made and be close-minded to other styles of trading.

I genuinely wish I started trading futures earlier. It would’ve saved me tons of money that I blew on short-dated options.

Thanks for reading and have a great week!

-Jordan

@AcetheKidTA