The Rational Trader: Fading the Melt-Up — My 50% Gain on IWM
JD explains how he used his daily arbitrage model to fade an overstretched IWM rally, turning a tough open into a 50% gain on a defined-risk put debit spread.
Read More
Author: JD Dlugosch
The Rational Trader: Cracker Barrel, Darden, and a Fed Cut
JD highlights two restaurant trades — Cracker Barrel and Darden Restaurants — and wraps with the Fed’s 25 bps rate cut, which gave markets a pop before fading.
Read More
The Rational Trader: When Good News Turns Bad: A SPY Call Spread Trade
JD explains how a strong retail sales report became “bad news” for the market — and how he played it with a SPY 660/661 call debit spread for a 10% gain.
Read More
The Rational Trader: Fading the Melt-Up With a SPY Put Spread
JD faded Monday’s “melt-up” with a SPY put debit spread, buying the 661 put and selling the 660 put for $0.44, and closed it for a 70% gain.
Read More
The Rational Trader: A Restoration Hardware Call Spread Ahead of Earnings
JD sets up a call debit spread on Restoration Hardware ahead of earnings, buying the $227.50 call and selling the $242.50 call to follow institutional signals.
Read More