My Personal Journey to Earning $6,000
In this post, I want to discuss two sources of income that have significantly contributed to my financial success.
Source 1: Market Analysis
Let’s dive into some news analysis, accompanied by a chart to help illustrate the current market situation.
Quad Witching occurs when futures, stock options, futures options, and index options all expire simultaneously. This event frequently leads to increased market volatility.
Data indicates that these days often see heightened price movement, though the magnitude of this movement closely relates to the status of the options market:
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When the market experiences high short gamma exposure (meaning market makers have sold many options), price fluctuations can be significantly intensified.
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Conversely, the market is usually in a long gamma state, which tends to dampen volatility.
Gamma Exposure and Key Levels
According to Barchart, the current gamma exposure for the SPX is as follows:
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5650: This level marks considerable negative gamma exposure. If prices fall below this point, it will trigger increased selling pressure.
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5655, 5675, and 5700: These levels exhibit slightly negative gamma, but their impact is less significant.
Conclusion: We face a critical juncture: if we drop below 5650, selling could accelerate sharply. On the flip side, upward movement may be muted because of lower negative gamma.
Keep in mind that option expiration (OPEX) generally weighs negatively on the market.
Trading Strategy
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I am entering a short position with a plan to add if the market moves against me.
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I will maintain this position until market close.
Key Levels to Watch
- Resistance Levels:
- 5666: This morning resistance level; remaining below this indicates a bearish trend.
- 5684.50: The next major resistance level.
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5703.50: Another crucial resistance if 5684.50 does not hold.
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Support Levels:
- 5637.25: The first support zone.
- 5626.25: A more significant support level, which I anticipate will hold.
- 5618.25: A potential downside target if we break below 5626.25.
Summary
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Bearish Scenario: Remaining below 5666 could lead us to 5626.25 and potentially down to 5618.25.
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Bullish Scenario: A breakthrough of 5666 may unlock gains toward 5684.50 and beyond.
Source 2: Futures Trading
In addition to my market analysis, I also trade futures, earning around $2,300 a month. However, this isn’t my primary income. I have a strategy that doubles that amount, which serves as my main source of income. While I won’t detail that strategy here, it’s linked to a post by u/bernard06z on Reddit. I encourage you to check it out, and feel free to reach out with any questions!
I’m curious—do you rely on futures trading as your primary source of income?
One response
Thanks for sharing your insights and experiences! It’s fascinating how you’ve analyzed Quad Witching and its impact on market volatility. Your breakdown of gamma exposure is particularly informative and highlights the importance of understanding market dynamics, especially on expiration days.
Regarding your trading strategy, it’s impressive to see how you’ve structured your positions based on clear resistance and support levels. It’s always a good approach to have a defined plan and to manage risk effectively, especially in a potentially volatile environment.
As for trading futures, I can see how it can be a lucrative source of income for some. It sounds like you have a solid strategy that works for you, which is critical when it comes to trading. I’d love to know more about your secondary strategy when you’re comfortable sharing. Do you find that your trading experience helps you in other financial decisions as well?
Thanks again for sharing, and best of luck with your trades!