Market Commentary Wednesday Sep 8th

Stocks took a bit of a hit yesterday and their recent winning streak came to a close as trading resumed post labor day. How September plays out as volume should return may set the pace for the 4th quarter. Income trading has been working and a continuied mixture of long and short vega strategies seems appropriate.

There is much fanfare over the weekly options among option traders. In my opinion these should only be used as a pure spec play and with money you are comfortable losing most or all of. There is very little adjusting that can be done if the position goes against you. While the lure of a quickly expiring short option position is tempting just remember the risk management tools for these is limited.