Ep. 246 Anne-Marie Bayind: Feel At Home Trading On The Range
Dec 7, 2023
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Anne-Marie Bayind, CEO of The Tradingbook.com, joins the podcast to discuss market rotations and trading on the range. She explores how butterfly spreads can boost portfolios and shares strategies for high-volatility plays like Boeing, Tesla, and oil. The discussion covers the significance of volume and moving averages, evaluating the current cycle and volatility, and the dangers of delaying trades. They analyze trading strategies for Boeing and Tesla, emphasizing the importance of price levels and risk profiles. They also discuss short-term trading strategies and the importance of patience and practice in developing trading skills.
Being cautious when trading during a range and waiting for pullbacks to engage can help minimize risks and maximize trading opportunities.
Focusing on price action and traders' response to it, rather than relying solely on market predictions, is essential for making informed trading decisions.
Deep dives
Key Points on Trading Ranges
Traders discuss trading ranges and how to approach them. They emphasize the importance of being cautious when trading during a range and waiting for pullbacks to engage. They also consider factors such as volume and moving averages to make trading decisions.
Interpreting Market Signals
The podcast episode explores the interplay between market signals and traders' perceptions of the Federal Reserve's actions. The discussion highlights the importance of focusing on price action and how traders respond to it, rather than solely relying on market predictions or central bank statements.
Volatility vs. VIX Index
The podcast delves into the discrepancy between volatility and the VIX index. It explains that the VIX index measures only 30 days of volatility and may not capture certain market swings. The absence of VIX signals should not overshadow the potential for wider swings and the impact of significant options trading in shorter periods.
Market Ranges and Butterfly Options Strategy
The episode ends with an exploration of potential trading strategies for stocks like Tesla and the XOP ETF. The discussion introduces the concept of butterfly spreads for these securities, providing specific strike prices and expiration dates for potential trades based on projected price ranges.
Where the bulls and the butterflies play. Anne-Marie Baiynd, CEO of The Tradingbook.com, joins Investor’s Business Daily’s “Investing with IBD” podcast to explain recent market rotations and why we’re at the top of market ranges. She explains how to make butterfly spreads boost your portfolios, and how to use them for high-volatility plays like Boeing, Tesla and oil.