Yesterday a tax hike was announced and the market abruptly sold off. But today the market’s back up even higher than before. Tom claims this is another “I told you so” moment in respect to what’s called fundamental (news-based) analysis. Nobody can predict the markets. A math-based, mechanical approach is always the way to go. The yutes’ portfolios are reflecting this. The market’s bouncing all over the place and that’s working for them: they’re keeping their deltas bearish-to-neutral, maintaining that positive theta, rolling their positions at 21 days-to-expiration to free up buying power, and collecting more premium. Trade small, trade often. Rinse and repeat. Bonus Lesson: Either add IV Rank as one of your columns on your positions tab OR look at “Positions” in the watchlist section to scan your positions’ IV Rank. The positions with reasonable IV Rank are good to keep on, but if they’re pretty low (in the single digits), it could be a good idea to take them off. When volatility in that underlying expands again, that will work against your short positions.