Feeling the Market’s Heat? You’re Not Alone.
SPY is up almost 30% for 2024 and has climbed another 6% since November. The buzz is everywhere—friends who never cared about stocks are suddenly asking me what they should buy. When people who once hated the idea of trading start feeling excited, that’s often a sign to tap the brakes, not stomp on the gas. Where do you think we are on this chart:
Why This Isn’t the Best Time to Sell Premium
Take a look at where we are. The major indexes are flirting with all-time highs,
VIX (a measure of market volatility and fear) is near lows.
Selling options premium in these conditions isn’t attractive. You simply don’t get paid enough to justify the risk. I’ve been telling my inner circle this for weeks: when the environment isn’t favorable, we step back rather than force trades. I wrote about this in the blog below, did you read it?
I’m Not Bearish, Just Careful
Don’t get me wrong—I’m not rooting for a market crash. In fact, I’m hoping we’ll see a nice “Santa Claus rally” at the end of December and into the first couple of weeks in January. But that doesn’t mean I’m ready to pour all my capital into these lofty prices. I’d rather wait for better opportunities. Buying high and hoping to sell higher is not my favorite recipe for long-term success.
It’s Not Rocket Science: A Real-Time Example
This week GOOGL announced a new chip and the stock took off. Good Kids have been in Google since November. I posted this all free in our discord, you can see when we got in!
We sold covered calls this week and then bought them back for a win. There was no panic, no confusion—just a simple, mechanics-driven process. When you learn to think this way, trading becomes less about luck and more about skill. And that’s exactly what I share inside my inner circle. It’s not about copying my moves; it’s about understanding why I make them, so you can apply the logic to your own trading.
Emotions: The Real Battlefield
If you catch yourself rushing into trades because everyone else is, you’re trading on emotion, not strategy. That’s when fear and excitement replace logic. The best traders know how to handle these emotions. They watch, wait, and plan rather than chase. Remember, success comes more from managing yourself than finding a “perfect” strategy.
Use the Holidays to Reflect
We’re heading into the holidays, a time when many traders step back. This is a great chance for you to reflect on what’s holding you back. Is it fear? Analysis paralysis? Uncertainty about where to start? Now’s the time to think it through—before you throw money into a market that’s already had a huge run.
Join the Conversation Over Virtual Coffee
If you’d like to talk more about all this or anything, I’m hosting a Virtual Coffee Hour on Wednesday, December 18th at the market open. It’s a relaxed setting where we can chat about the market, and how to move forward confidently. Click here to add it to your calendar!
Discover the Inner Circle
Mr Money Maxwell inner circle isn’t a “follow my picks” club. It’s a place where I share what I’m thinking, what my coaching students ask, and how I navigate all sorts of market conditions. It’s about giving you the insight to make your own informed decisions.
Your Next Step
Think carefully before jumping in at these high levels. Consider joining me for virtual coffee and, if you’re ready, step into the inner circle. Learn how to manage your emotions, develop solid plans, and trade with confidence—even in tricky markets.
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