Red Light, Green Light—Part Three
RED LIGHT, GREEN LIGHT: More Interesting Information

Years ago I came across these two graphics. They are amazing, and back up everything I’m trying to teach here. Yes, they are a bit old, but I honestly don’t things have changed that much.

This is a 40-year study. That says a lot. Look at the months and how they are up and down. This doesn’t mean this year’s May will mirror the chart you’re looking at, but all-in-all they do tell a story.
Market Performance
What do you learn from this? Compare this to the full year chart. Do you see what I discovered and how it will affect your investments and trades? Does this help you, and by you this time, I mean all of you option investors in dealing with expiration dates? This time I’ll say, “Knowledge is power.”

Now look at a monthly breakdown into days. This uses the same period of time.
Market Probability
It doesn’t get more informative than this. Notice the middle of almost every month. It’s a down time. Oddly, this is the typical 3rd Friday Expiration Date. If you’re paying call options, it could be a tough time.

We hope you see the benefit of timing. Remember the adage for comedy:


It’s true here in an important way—it’s your money. Need I say more?

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