The day after an ugly sell-off, Todd “Bubba” Horwitz opens to the kind of short-covering rally he had called on his morning Market 120 show, a “rip-your-face-off” move after the market stretched about three standard deviations from its mean. The PPI report came in well below expectations and bonds rallied. Bubba says he’d be a seller of both the 30-year and 10-year bonds around 106, since he thinks inflation is still rising. He starts with a check of open positions. The Apple call spread was cashed as a winner. The CoreWeave (CRWV) 76/75 put spread is almost certainly a loser. The MP 42/41 spread is close and needs only a small rally, but he’s counting it as a loser for now. That would put his credit-spread record at about 20 wins in the last 22 trades. He doesn’t avoid a stock just because of one loss, and goes straight back into CRWV. Then he scans his watch list live and adds trades only when the premium meets his minimum: – CRWV 62/61 put spread for tomorrow, for 47 cents – Apple 345/347.50 call spread for tomorrow, for about $1.02 – MSTR 145/144 put spread for tomorrow, for 48 cents – Nvidia 215/212.50 put spread for tomorrow, for about 80–87 cents – QQQ 723/722 put spread expiring today, for 35 cents He passes on several names because the credit isn’t there. IONQ, for example, would need next week’s expiration to pay enough. He notes that the S&P is nearing a high-volume area. The Dow gives him the day trades. When price reaches his level and triggers, he enters, scales one contract out at a profit and moves the stop to break even on the rest. He gets a second entry later. Both day trades finish as winners. He also spots a possible crude oil setup forming, but doesn’t trade it on air because he couldn’t help viewers manage it after the show. The lessons are typical Bubba. Wait for the market’s “speed and velocity” to trigger a trade instead of forcing one. Keep selling short-dated credit spreads while you wait. Expect a snap-back when the market stretches far from its mean. And slow down when the screen gets busy: five spreads in one session is more than usual, and he warns viewers not to take on more than they can manage. Key takeaways: – Extreme sell-offs often bring sharp reversals; plan for them before the open. – Scale out of day trades and move the stop to break even. – Only sell spreads when the credit meets your minimum. – One losing name doesn’t rule out the next setup in it. Options and futures involve risk. This episode is educational and not a recommendation. |
About Trading Live With Bubba
Trading Live with Bubba is a live-session show on the Tradier Hub YouTube channel hosted by veteran trader Todd “Bubba” Horwitz. Airing Tuesday and Thursday mornings, Bubba scans markets in real time, calls out credit spread and day trade setups, and teaches trading discipline through live narration.
