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Sell in May and Go Away?

By:Michael "Dr. Data" Rechenthin

Legend has it that it’s a good idea to buy stocks in May an hold onto them. Does historical analysis back that up?


Does the popular saying "sell in May and go away" stand up to scrutiny? Since 1994, the S&P 500 has increased 59% of the time in May, with an average gain of 0.5%, but with a relatively modest (historically) ± 3.9%. May through August has seen a relatively lower percentage of up months, but still leans bullish positive drift.


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Twenty Crypto Tokens on tastytrade

Twenty tokens are available on the tastytrade platform. You can find them here.


The team at tastycrypto is excited about crypto token XRP. Here’s the reason:

  1. CME futures in XRP have just begun trading. Volume is light right now, but keep it on your radar!
  2. The US Securities and Exchange Commission is reviewing applications for spot XRP exchange-traded funds.
  3. XRP, along with 19 other cryptos, is available to trade on tastytrade.

Feel free to reach out to the team at support@tastycrpto.com for more information and help.


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Free Options Pricing Spreadsheet

Last week's spreadsheet was so popular, we decided to provide another link to it this week. You'll need Excel with Macros enabled.

The link can be found HERE.


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Two Trade Ideas

TSLA ($344.39) Iron Condor (JUN) $4.90 Credit

Tesla (TSLA) has had a nice rally off the lows in April of around $275. With no shortage of news-driven or Elon commentary binary events, volatility has remained high with an IVR of 30. If you think the stock might remain rangebound for a bit, an iron condor short the 300/285 put spread and the 400/415 call spread trades at $4.90 and covers the range between two big beautiful round numbers.


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GLD ($300.73) Call Broken Wing Butterfly (JUN) $0.40 Credit

The market is up, bonds are getting killed and interest rates going higher, but gold remains bid? Gold futures /GC have bounced off the 3150-3200 multiple times –maybe that's the low here. If you think it might grind higher but don't want the downside risk, a call broken wing butterfly in GLD long the 305, short 2x the 310, and long 1x the 320 trades at a $0.40 credit with a breakeven up around the highs.


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Michael Rechenthin, Ph.D., (aka “Dr. Data”), managing director of research and development, has 25 years of trading and markets experience. He’s known best for his weekly Cherry Picks newsletter. On Thursdays, he appears on Trades from the Research Team LIVE.

Nick Battistatastylive director of market intelligence, has a decade of trading experience. He appears Monday-Friday on Options Trading Concepts LiveOn Wednesdays, he co-hosts Johnny Trades@tradernickybat

For live daily programming, market news and commentary, visit tastylive or the YouTube channels tastylive (for options traders), and tastyliveTrending for stocks, futures, forex and macro.

Trade with a better broker. Open a tastytrade account today. tastylive Inc. and tastytrade Inc. are separate but affiliated companies.



Options involve risk and are not suitable for all investors. Please read Characteristics and Risks of Standardized Options before deciding to invest in options.

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