Stocks: In May Go Away!

April 6, 2018 | Filed under: Credit Spreads

A few of you know what this means, but for the rest stay tuned. There are a number of seasonal patterns, that happen in May. Now why am I mentioning it now in April. Well if you are an options trader, in particular a seller, you are selling options into May right now. So, a preemptive conversation.

Since the 1950’s the best 6 months to trade have always been Nov 1, through April 30. In May (and some times june) the market generally drops, or at least goes choppy (side ways). The statists, are like 7.4 Nov to April and .4 percent the next 6 months.

Therefore, the old adage in the brokerage houses,”In May Go Away”. Get out of aggressive stock positions.

To me it does not really matter. I like a sideways trending market. It is great for one of my favorite trades Credit Spread. Check it out.

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