Hey Traders,

I’m out here in Naples, Florida, soaking up the sun — and watching this market try… and fail… to push higher.

Now to be clear, the market wants to move up.

But it just can’t seem to do it.

Why?

Because there’s still way too much overhead resistance.

And that resistance is acting like a ceiling.

Every time the market tries to climb? It hits its head — and drops back down.

So what we’re moving into now is what I call a range-bound market.

That means we might see a few higher lows… and even some new highs in individual stocks…

But the broad market is not going to make a new high. Not yet.

Not with all that resistance still stacked above us.

Where to Focus Now

This doesn’t mean you stop trading — in fact, it’s the opposite.

Because right now, as I said, we’re seeing some individual stocks break out to new highs.

Those are the names you want to focus on.

The ones with strong, clean trends.

Why?

Because you can use that trend to generate income.

And in a sideways or range-bound market, that’s your edge.

Why Option Sellers Have the Upper Hand

The truth is, right now we’re in a crazy situation — one that heavily favors the option seller.

Option prices are sky-high.

Why? Volatility.

When volatility rises, option premiums get pumped up.

And market makers? They have to set a high price on those options just to protect themselves.

If they don’t — and the stock makes a big move — they could be on the hook for a major loss.

That’s great news for traders like us.

Because it means you can sell premium at rich prices and collect income — without needing to pick a direction and without having to time the market perfectly.

The Playbook for Right Now

So what should you do?

Stick with the strategies I keep talking about:

• Bear call spreads on bearish stocks
• Bull put spreads on bullish stocks
• Covered calls on stocks you want to own
• Naked puts on stocks you wouldn’t mind owning at a lower price

They’re all income strategies that work great when premiums are high and the market is stuck.

Which, if you’ve been paying attention… is exactly where we are.

Stay focused, sell the premium, and let the range-bound market work in your favor while other traders get frustrated waiting for the market to go “up”.

Trade well,
Jack Carter

P.S. Have you heard I’ve got my eye on three sneaky stocks for May? Click here to get the tickers!