Despite a near 2% gap down for $SPY at the cash open on Friday I noticed the extrinsic value starting to decay quickly ahead of the 3-day weekend. Wanted to play some weekly put spreads but never did meet my comfort level and I didn’t feel like gambling. As the day wore on and the SPY moved lower, the bid on out-of-the-money puts dissipated. Perhaps the risk appetite is still there despite breaking back under 1200.

Next week should be interesting due to the lack of economic reports. I welcome the respite and would prefer that gaps weren’t the norm but rather atypical market behavior. There are more gaps in the SPY right now than in the mouths of a minor league hockey team. One last item…we all know that with Tuesday the volume magically picks back up because all the “sell in May and go away” crowd returns to put their capital to work (not).  So for everyone that’s been complaining about the volume there are no more excuses. Enjoy the links and your extra long weekend!

  • Better Trading Through Science [Bloomberg]
  • New insight into impulse control [Vanderbilt University]
  • 3 Fascinating Facts About Our Brilliant Brains [PsychCentral]
  • A Taxonomy of Decision Biases [David Arnott]
  • Sex: Why it makes women fall in love – but just makes men want MORE! [DailyMail]
  • Glucose Is Not Willpower Fuel [Evolutionary Psychology]
  • Cognitive dissonance does not have a place in trading [Trader Habits]
  • Playing Highly Competitive Video Games May Lead to Aggressive Behavior [APA]
  • Men, Women and Spatial Intelligence [Neuroskeptic]
  • If you had to leave Planet Earth in 24 hours how would you spend your last day? [Mind Map]
  • Does money make you unhappy? [Wired]