The S&P 500 rallied to an all-time high on Wednesday, its first Christmas Eve record since 2013.It was a quiet, though productive day. The S&P 500 rose 0.3%. The Dow gained 288 points, or 0.6%, and closed at a new record, too. The Nasdaq advanced 0.2%.The CBOE Volatility Index, or VIX, closed below 14 for the first time since Dec. 2025. It was everything you would hope a Christmas Eve trading day would be. ...

I’m a devout risk-manager. When I trade, I am far more concerned with not losing a lot than I am making maximum profit. And I see the pros and cons of that posture, over and over again. That’s why, when I coach traders and investors, the first thing I emphasize is for them to personalize their trading in every way possible. They are not me, and vice-versa. A good way to test where you sit on that risk management spectrum is to present you with what I’d consider to be a high-flying option collar scenario. ...