StratagemTrade.com

P.O.T. this week is last hour of trading. We will work on a 3-leg box or short butterfly.

We will also cover the new TRADER CHECKLIST being implemented as part of P.O.T. improvements for June.

Enjoy the June P.O.T. Schedule.

May 27
120-Minutes

Rolling the Razzle Dazzle.
This was a class that discussed the process of rolling a Razzle Dazzle that is causing problems. We answered student's questions on the topic, mostly about the process on rolling a short spread that is about to go ITM

We brought out and expanded on the the SPX option chain as a template for other things like ETFs and equity stocks as well.

This is a VERY important class for adjusting any vertical spread for any strategy, and even collars. Understanding how spread prices span out through time and as they go ITM and OTM like a Japanese Folding fan is the best way to understand option pricing.
*****
Especially beginner and intermediate option traders become comfortable with knowing what a spread is worth once they learn this technique I developed.

We have a new Fed Chairman. We have NOT had a modern Fed Chair that was NOT tested with a crash – short or long term.

GREENSPAN
Alan Greenspan was sworn in on August 11, 1987. Two months later we had the 1987 crash where we fell 22% in a day.

BERNANKE
About 18-months after the greatest authority on the Great Depression was sworn in, his inactivity during collapsing banks almost caused another Great Depression.

YELLEN
Yellen had an overnight LIMIT down that blew out a lot of accounts.

POWELL
He had his challenges with ruining Christmas with a 10% drop the holiday week suggesting he was raising rates. He had Covid. He was also famous for “transitory inflation” that was more like hyper-inflation and the largest levels since the 1970s”.

WARSH
Kevin Warsh is not only saying the usual things a Fed Chair says when sworn in, he is saying he is going to change the Fed.

We will see how long before he is tested.

FREE GAMMA SCALPING CLASS
Tomorrow (Thursday) May 21, 2026
7:00pm CST (Chicago time).

Come join us for a 90-120 minute class on Gamma Scalping
This is a preview to the MINI-CLASS we are having in 3-weeks.

Simply send an email to the office ([email protected]) requesting attendance and a link will be provided. Seating is limited to 250.

P.O.T. CLASS IS THURSDAY

The office asked me to change the class to Thursday and have the topic be GAMMA SCALPING.

We have the Gamma Scalping Minis Class coming up in 3-weeks and questions are coming in. We will answer everyone's questions with a Gamma Scalping Mini Class Preview on Thursday at 7pm Central.

Everyone is invited.

Contact the office at [email protected] for a link.

0DTE – DAY TRADING

Starting today I have been doing short recorded classes so people who like 0DTE option trading can watch me. This has been requested for some time and I am doing it now that things are slowing down.

This is today's position so far, just like taught in the MINI CLASS we had.

I will be doing this most days for a week or two so that people can see how I trade when it goes against me, does nothing and moves favorable. Enjoy.

May 14, 2026

Portfolio Hedging Questions
100-Minutes
With the market hitting SPX 7500 I was overwhelmed with questions about hedging a portfolio of stocks with indexes. We covered the process of hedging a portfolio via long put, or vertical. Then we compared selling calls in the equities vs an index and when one is better.

This was the best Reader's Digest version of putting a tourniquet on a portfolio of stocks. The MINI CLASS was a course on surgery and this was a course on being a paramedic in 100-minutes.

POT CLASS IS BEING MOVED TO TOMORROW (THURSDAY 5-14)

Explanation:

Earlier today in an update I mentioned that the class schedule was being changed.

We are pushing the FINAL SKEW back one week and doing a more time sensitive PORTFOLIO HEDGING instead.

After finding out about this topic change I have been bombed with questions that people want included. They are still coming in 90-minutes before class.

This is my fault. I should have given more time notice about the topic change, but that was only done because so many people asked for it with the market so high. Many people realize that if they do not hedge when the SPX is near 7500, they may regret it.

THE CLASS WILL BE TOMORROW NIGHT AT THE USUAL TIME.

Sorry for the inconvenience and change; however, I do not want to blow off questions and I do NOT want to just create weak content in a rush. This has to be a “how to guide” and practical as your money is on the line.

I TAKE THIS VERY SERIOUSLY.

If you have a portfolio hedging question, please submit it quickly so I am not rushed and can have the slides done by midnight.

Thanks.

PATTERN DAY TRADER RULES and 0DTE
We are expecting June 8 to be the day our broker gets rid of the PATTERN DAY TRADING rule.

I have been getting people who are frustrated when doing 0DTE trades. They have one loser and it ruins their mood. This is very understandable.

0DTE trading is a very tough game, and it can be very emotional. It is NOT for everyone (or even most people). This is why we had a 0DTE MINI CLASS on safer ways of doing 0DTE, harvesting profits, etc.

With the PATTERN DAY TRADE RULE changing in a few weeks, it is important to address this more as DAY TRADING will become even easier.

First.....some people are not cut out emotionally to have this type of fast moving and risky trade strategy. Slapping on a 80 trades a day is not uncommon for me, and it use to be 100's when I was on the trading floor.

Other's have learned to do 0DTE trades by picking their spots. They wait for a large drop to buy, or a large jump to sell, then wait.

BAD TRADE
When a bad trade comes, and it will often, it hurts emotionally. If you can ignore it and not change your attitude or opinion, it is fine. Some people will start to get careless and reckless trying to gamble their way back with the thinking “I just need to get lucky one time and I am fine”

This is NOT the way to trade 0DTE.

BELOW is a great example I was showing someone. At the bottom you see a trad for tomorrow's expiration (May 13). Ignore it. It is a wide condor legged for $0.10.

You will see the purchase of 4 spreads (1 at a time) buying the 7365-7360 put spread. The spread was going for about $1.10 at the time and the first trade was bought for $1.50 (0.40 worse than doing it as a package). The second was a mess being bought at $2.20. The third still sucked for 1.40. Once I got into the rhythm of the market's behavior the 4th one was bought for a $0.70 credit.

I then sold 3 contracts of the 7350-7345 put spread (making a condor) for $0.95 to take back premiums and lower my risk to bout $160. After a drop I sold the 7360-7355 put spread for $1.65 (making a butterfly) and had the whole group of trades done for a baby credit.

LESSON
I had 2 BELOW AVERAGE trades and 1 HORRIBLE trade. I then had one great trade. It went back to the old adage of small losses and big gains. If I am risking $1 I better make $2.

There were more trades done after this with the position now looking as follows: