The "daily Call" From Option Alpha: Options Trading | Stock Options | Stock Trading | Trading Online

Hey everyone. Welcome back to the daily call. On today's call, I want to talk about why we should take what the market gives us when trading directional. We actually just finished up a trade here in EWZ that we sent out to members. It was a directional trade I guess by nature because we got a technical sell signal in EWZ using our indicators from the signals research which have actually been working out really well on a lot of trades. Now, they don't generate a lot of signals which is a good thing I think, but when they do, they've actually been very consistent and very good at predicting turns or stops in the market. We got a signal recently for EWZ that it was reaching a level of maybe overbought and it was going to turn around. We did a directionally bearish trade. We sold a very tight call credit spread. We didn’t sell far out of the money, we sold just a little bit out of the money, give ourselves a little bit of wiggle room in case we're wrong, but still, we want to collect a pretty decent premium. This