A few years ago, the market felt dead the Wednesday before Thanksgiving and I was already thinking about turkey and pumpkin pie. 

The S&P had barely moved since the open. Volume was a joke. 

But that afternoon, a Federal Reserve governor made some throwaway remark about inflation and the whole dynamic changed. 

The S&P dropped like a rock and liquidity vanished. 

Option spreads blew out, and I watched a position that shouldn’t have been a big deal lose 30% of its value in five minutes.

Luckily, I didn’t blow up. 

I had reduced my size early that morning, like I always do during holiday weeks. 

But it was a good reminder that it’s best to stay alert this time of year. 

If you’re trading this week, thinking it’ll be “easy,” you’re setting yourself up for trouble.

Here’s what not to do.

Slacking: Not Optional

This week, you’re walking into a market where half the players aren’t even at the table. 

That means fewer buyers and sellers, wider bid/ask spreads, and a lot more slippage, especially in the options market. 

You might think you’re safe holding premium into a quiet Friday, and then some trade headline drops and your theta play turns into a nightmare.

But I’m not saying you shouldn’t trade. 

You just have to treat markets like they’re loaded, meaning you size smaller, stick to liquid names, and don’t chase.

You know how I trade this kind of week? 

I get in, I get out, and I don’t overthink it. 

If I’m holding anything overnight, it’s because I really want that exposure, not because I’m bored or trying to squeeze extra juice from nothing. 

I don’t force it. 

And if I see a gift — like overpriced premium in a name I know well — I’ll take it. 

Don’t Sleep on the Job

Right now, with all the noise surrounding the Fed, inflation, and rate cuts, it feels like nothing’s happening. 

But that’s when the market loves to pull the rug: When the newswire’s quiet and traders are half asleep on stuffing.

So my advice is to trade smart with smaller size, quicker exits, and tighter risk. 

And if you’re not sure, just sit it out. Go spend the day with your family. 

You don’t have to prove anything to anyone.

I’ve traded through more than 20 holiday seasons, and I’ve seen more people blow up their November gains trying to force action than I can count.

Be the person who comes back the Monday after Thanksgiving with cash in hand and a clear head.

Stay Street Smart,
Jeff Zananiri