Ernie praises Mr Jaffee for his incredible performance, but challenges him as to what makes an excellent world class trader.

Most traders trade way to large, and it gets them into trouble, sometimes forces them to liquidate an account.

Over trading is a deadly virus that inflicts too many traders. If we could just trade less, especially when the opportunity or edge has left the building, the world would be a better place.

Ernie describes the concept of contango and how it is the normal way of things in the market. The opposite of contango is backwardation, weird times.

The summer season usually brings lower volatility, but this time volatility has dropped dramatically. Ernie describes the seasons in terms of volatility.

Ernie explains our inversion of risk philosophy that creates a zerro anxiety trading method.

We had very unusual activity in the overnight market. It looked like the market was going down for the count, then out of nowhere the market gets propped up and shoots straight up. There was no news, no catalyst, no event. Maybe it was the PPT. Anyways it set up a magnificant trade for us.

Ernie explains how selling premium on the last day of expiration gives us an incredible edge in the market.

Ernie had hand surgery earlier in the day, so he took an early morning position, then came back to wrap things up for the crew.

Introduction to the show, Ernie lays out the markets and strategies he will focus on.