ITM Update: The last 2 days have been ugly . .

Heather Cullen

Heather Cullen

In The Money

The last 2 days have been ugly . .

 . . and your heart always drops when you look at your account and see that you are worth less than you were yesterday and the day before. Well, mine does anyway!

But let’s keep things in perspective. Successful investors like we are have to control their emotions and not act on impulse.

Remember, pullbacks are normal

Looking at the chart above there have been 5 pullbacks this year already. I have circled them on the chart above.

The SPY today is only slightly below the 10-day EMA and well above the 50-day and 100-day EMAs, so no real danger signals right now. Of course, we have to keep an eye on the market in general especially as inflation is starting to rise, which means that interest rates will follow and that may put a dampener on the bull market. But right at the moment the bull market seems intact so we just keep watch.

In the chart I have marked the other 5 pull backs this year and you can see that most bounced off the 50-day SMA, so don’t be surprised if it happens again. As Mark Twain said: History never repeats itself but it often rhymes. This is especially true in the stock market.

How is ITM going?

Very nicely, thank you! Depending on your starting date and your decisions about exactly what option to buy means that your results will vary from the figures below. But measuring from the date the In The Money paperback was published our $10,000 starting portfolios are now worth either:


  • $20,612 – Lazy ITM
  • $22,330 – Turbo (roll up 6 April)
  • $21,826 – Turbo (roll up and out 11 April)

So all is going well, just as planned.

Get ready to roll!

It is halfway through July so soon we will have to roll out any September 2021 options (remember we always get out at least 30 days before expiry). When you are rolling out it doesn’t really matter whether it is an up day or a down day. If it is a down day then you are selling lower and buying lower. If it is an up day, you are selling higher and buying higher. Just make sure you do the selling and the buying at the same time, don’t sell one day and then buy another day.

Happy trading!

Heather Cullen Signature

Heather Cullen

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