2024 Archive

January 3rd, 2024 – Weekly Strategy Session – We’ve had a decent pullback in recent days, but no major damage done yet. Breadth indicators still looks ok as does the VIX Term Structure.

New Case Studies today were – DIS Wheel Trade, GDX, XOM and LLY Bull Put Spreads, NFLX Diagonal Call Spread, NKE Bear Call Spread and RUT/SPX Rhinos.

January 10th, 2024 – Weekly Strategy Session – The market continues to look very strong and does not really show any signs of slowing down.

New Case Studies today were – BAC and SOXL Wheel trades, CRWD and NVDA Bull Put Spreads, GS Earnings Diagonal, TSLA Trapdoor and a QQQ Bear Call Spread (hedge).

January 17th, 2024 – Weekly Strategy Session – Stocks have been mixed lately, but we did see some late day buying support today, particularly in some of the riskier areas of the market which could be a good sign. Breadth indicators have dropped but are still holding up well.

New Case Studies today were – ADBE and MSFT Bull Put Spreads, BA Sold Put with delta hedge, SPY March Condor, IWM March Trapdoor and TSLA Earnings Diagonal Put Spread.

January 24th, 2024 – Weekly Strategy Session – The market continues to grind higher and all our breadth indicators are looking ok. We are quite extended from the 20-day moving average but otherwise there is not too much to be concerned about.

New Case Studies today were – AMAT Bullish Diagonal, INTC, KKR and TLT Wheels, META Bullish Diagonal, NFLX Bear Call Spread, PYPL Condor and ZM Long Strangle.

January 31st, 2024 – Weekly Strategy Session – Well, the Fed spoiled the party today as the market did not like the sound of higher rates for longer. We need to see how the market reacts tomorrow and we also have key earnings with AAPL, AMZN and META. So we’re in a bit of a watch and see period for now, but we did find some ideas for this week.

New Case Studies were CRWD and LULU Bear Call Spreads, META Earnings Condor, OIH Unbalanced Condor and QQQ March Condor.

February 7th, 2024 – Weekly Strategy Session – SPX is flirting with the important 500 level, will this be a level where the market pauses, or will we bust through it. All our breadth indicators are looking quite good, but keep an eye on the number of stocks above their 50-day MA.

New Case Studies today were – COIN Earnings Diagonal, COST Condor, CRM, MRVL, SHOP and ULTA Bull Put Spreads, GS Long Strangle, META Bear Call Spread, OXY and SOXL Wheels and a VIX OTM Butterfly.

February 14th, 2024 – Weekly Strategy Session – Nice recovery by the markets today and all our breadth indicators look ok, but keep an eye on the stocks above their 50-day moving average.

New Case Studies today were – EXPE, NFLX, NVDA, SNOW and UBER Bull Put Spreads, AMD Unbalanced Condor and BHP Wheel.

February 21st, 2024 – Weekly Strategy Session – Market volatility has really picked up lately, but it looks like NVDA earnings will save the day. Let’s see what tomorrow brings. Breadth indicators are still looking ok, so not too much to worry about…. yet.

New Case Studies today were – GS and V Bull Put Spreads, IWM and OIH April Condors, SLV and XLU Wheel trades and an SPY Bear Call Spread (hedge trade).

February 28th, 2024 – Weekly Strategy Session – The market continues to look strong and there doesn’t seem to be too much to be concerned about right now. We are starting to come into a weaker time of the year though, so do keep that in mind.

New Case Studies today were – AMT Bull Put Spread, BAC Wheel, COIN and NVDA Bull Put Spreads, CRWD and MRVL Diagonal Put Spreads for earnings and GS Unbalanced Condor.

March 6th, 2024 – Weekly Strategy Session – We keep expecting the market to pull back (and we may get a rug pull one of these days), but it just keeps chugging along. All our breadth indicators look good. The only small areas for concern are the rising VIX and potential negative divergence developing.

The key is going to be identifying when the market dynamic changes and making sure we adjust our trading accordingly.

New Case Studies today were – ADBE Diagonal Put Spread, BMY, OXY and PLTR Wheel trades, NVDA and SBUX Bull Put Spreads, DDOG Bear Call Spread and IYR Poor Man’s Covered Call.

March 13th, 2024 – Weekly Strategy Session – Our breadth indicators are all looking great, the only slight concern is the negative divergence that is potentially setting up in the indexes.

VIX remains very low which means Condors are difficult because the strikes have to come in a lot closer. We’ll continue looking at credit spreads and earnings diagonals for now.

New Case Studies today were – AVGO, CNQ, CRWD, MPC and NVDA Bull Put Spreads, LULU and MU Earnings Diagonals and a VZ Long Straddle.

March 20th, 2024 – Weekly Strategy Session – The market looks incredibly bullish and it’s hard to find a single stock that looks bearish. As such, all our examples for this week are bullish trades.

New Case Studies were – AMZN Poor Man’s Covered Call, ANET, APP, META, MSFT, NFLX, NOW and UBER Bull Put Spreads, PFE and SHOP Wheels.

March 27th, 2024 – Weekly Strategy Session – Breadth indicators are looking very strong as the market continues it grind higher. November to March is typically the strongest time of year for stocks, so we may be coming into a weaker period over the next few months.

New Case Studies were – AAPL, MRVL and NVDA Bull Put Spreads, NFLX and TSM Bear Call Spreads, ABR and URA Wheels, RCL Long-Term ITM Covered Call and a ROKU Pre-Earnings Long Straddle.
April 3rd, 2024 – Weekly Strategy Session – The market continues to chug along, but the next correction could be just around the corner, so we need to be vigilant.

We added some negative delta today to help offset our positive delta put spreads and wheel trades.

New Case Studies were – AMZN, CRWD, LLY, and SPOT Bull Put Spreads, DDOG, MDB and SHOP Bear Call Spreads, NFLX Earnings Diagonal, QQQ May Condor and an SPY hedge trade.

April 10th, 2024 – Weekly Strategy Session – We’re finally seeing some weakness in the market on the back of stronger than expected CPI data. No major cause for concern yet with some stocks finishing higher today and VIX futures still in Contango. Just keep an eye on the stocks above the 50 day moving average indicator. If that drops below 50%, it would be a strong warning sign.

New Case Studies today were – ENPH Earnings Diagonal, IWM May Condor, MDB Bear Call Spread, NVDA Bull Put Spread and TSLA Earnings Double Diagonal.

April 17th, 2024 – Weekly Strategy Session – We’ve had a good reminder in the last week or so that selling options is not always easy! Thankfully we’ve had some hedges in place that have helped a little.

We could be due for a little dead cat bounce soon, but keep an eye on the declining 21-day MA which could provide resistance on any rally attempt.

New Case Studies this week were – ABBV Broken Wing Butterfly, AMAT Condor, COIN Diagonal Put Spread, DELL Iron Butterfly, DJT Bearish Butterfly, HD Long-Term Bull Put Spread, LULU Bullish Butterfly, SPY June Condor and XLU Covered Call.

April 24th, 2024 – Weekly Strategy Session – The market is giving us some warning signs that the correction may not be over yet. The indexes are all below 21 and 50-day moving averages and those lines are starting to turn downwards. NVDA hit resistance right at the 50-day MA and sold off hard from there.

Continued caution is warranted and in this environment it is worth being a bit quicker with taking profits AND cutting losses.

New Case Studies today were – IWM, LULU and TSM Condors, LLY Diagonal Call Spread, NVDA and SPOT Bear Call Spreads and a TLT Wheel.

May 1st, 2024 – Weekly Strategy Session – The S&P 500 failed right at the 21 and 50-day moving averages, so we could be in for some more downside here in the short-term. Make sure you have some bearish / hedge trades in place.

New Case Studies today were – ABNB and SHOP Diagonal Put Spreads, AMZN Bull Put Spread, ENPH and TSM Bear Call Spreads, GOOGL Condor and PFE and PLTR Wheel Trades.

May 8th, 2024 – Weekly Strategy Session – The S&P is back above the 50-day moving average and IBD is suggesting 40-60% exposure levels which feels about right. I would like the see the percentage of SPX stocks above their 50-day moving averages get back above 55%, but otherwise things are looking a lot better than a few weeks ago.

New Case studies today were AAPL Unbalanced Condor, ADBE Bear Call Spread, ANET Bull Put Spread, NVDA Weekly Bull Put Spread, OIH Iron Condor, SNOW and PANW Earnings Diagonals.

May 15th, 2024 – Weekly Strategy Session – The S&P 500 broke out above resistance and all our indicators are looking very bullish.

We went through quite a lot of adjustments on open trades as well.

New Case Studies today were – BA and TSLA Bear Call Spreads, CLS, COIN, NOW and NVDA Bull Put Spreads, CRM and MRVL Pre-Earnings Diagonal Put Spreads, DKNG Poor Man’s Covered Call and MSFT Trapdoor.

May 22nd, 2024 – Weekly Strategy Session – The market is looking ok, but keep an eye on the stocks above their 50-day moving average indicator as it is showing some weakness.

We also did a quick lesson on Iron Condor and Credit Spread adjustments.

New Case Studies today were CRWD and LULU Pre-Earnings Diagonals, EWA Wheel, LLY Bull Put Spread, MRNA Condor, TLT Poor Man’s Covered Call, XOM Long Strangle, SPX Weekly Double Butterfly and VIX Broken Wing Butterfly.

May 29th, 2024 – Weekly Strategy Session – Our breadth indicators continue to deteriorate and we are seeing lots of stocks crossing below key moving averages. Definitely a time for some caution in my opinion.

Keep an eye on VIX Term Structure each day if the market is dropping.

New Case Studies today were – ADBE Pre-Earnings Diagonal, CRWD Bull Put Spread, IWM Bear Call Spread, MRNA July Condor, MSFT Unbalanced Condor, NFLX Trapdoor and TSLA Trapdoor.

June 5th, 2024 – Weekly Strategy Session – Price action looks very strong, but some of our breadth indicators look a little weak. Still, breadth doesn’t pay the bills (new saying that I just came up with, I kind of like it).

IBD just changed their exposure percentage to 80-100%, so that’s a good sign as well.

New Case Studies today were – AMAT, COIN, CRM, ISRG, LLY, META and TTD Bull Put Spreads, ENPH and PDD Bearish Calendars and GOOGL Bullish Condor.

June 12th, 2024 – Weekly Strategy Session – Markets rallied strongly today on the back of weak CPI numbers, but major indexes did close off the highs and we’re still seeing weak breadth. It will be interesting to see how the market responds over the rest of the week.

New Case Studies today were – ARM, LLY, NVDA and TSLA Bull Put Spreads, DELL Unbalanced Condor, LULU Bear Call Spread, MRVL and UBER Wheel Trades and an MU Pre-Earnings Diagonal.

June 19th, 2024 – Weekly Strategy Session – Stocks continue their upward momentum while breadth indicators still look a little weak. But only price pays and bull puts spreads continue to do really well in this market.

New Case Studies today were – AVGO, CHWY, CRWD and NVDA Bull Put Spreads, NEM and WF Long-Term Covered Calls, DELL Iron Condor, QQQ Bearish Butterfly and TSLA Broken Wing Butterfly / Rhino.

June 26th, 2024 – Weekly Strategy Session – Price action is looking ok, but breadth has deteriorated again, so we need to keep an eye on that. Seems to be a bit of short-term rotation into mega cap tech (AMZN, GOOGL, AAPL all looking strong).

New Case Studies this week were – AMZN, GOOGL and NFLX Bull Put Spreads, AVGO Condor, LLY Broken Wing Butterfly, XLU Covered Call and SPY Bear Put Spread hedge trade.

July 3rd, 2024 – Weekly Strategy Session – Bulls remain in control and with earnings season starting up again, we can look at a few more diagonal put spreads, starting with NFLX this week.

New Case Studies today were – AA and SLV Wheels, AMD, CRWD, GS, META and PANW Bull Put Spreads, VRT Covered Call and NFLX Pre-Earnings Diagonal.

July 10th, 2024 – Weekly Strategy Session – Stocks are on fire right now and it seems there is no stopping this freight train. We do have CPI tomorrow and PPI on Friday. We could easily rip even higher if the news is good but could also be an excuse for people to take some profits.

New Case Studies today were – AAPL and SPOT Bear Call Spreads, HD, TLT and NVDA Bull Put Spreads and a QQQ Bearish Butterfly (hedge). On some, we went a bit longer-term to minimize the impact of earnings.

July 17th, 2024 – Weekly Strategy Session – We saw massive rotation out of tech stocks and into banks, health care and real estate today. Rotation is better than broad based selling, so at least money is staying in the market and not coming out across all sectors.

Today, we talked about how to delta hedge on days like today to stem the bleeding which is definitely worth a listen if you haven’t heard this before.

New Case Studies today were – ABBV, GS, UNH and XLU Bull Put Spreads, BHP and KO Wheels and an SPY Bear Put Spread (hedge).

July 24th, 2024 – Weekly Strategy Session – Really nasty day today, but I hope my lesson from last week on delta hedging helped some of you! Days like today are exactly when this should be used.

I’m sure we’ll get a bounce at some point, but short-term sentiment and momentum is pretty bearish. Volatility is at the highest levels we’ve seen in the last six months which means Condors are back on the agenda.

New Case Studies today were – CSCO Short Strangle, SPY Directional Butterfly, QQQ Bear Call Spread, NVDA, OIH and SPY Condors.

July 31st, 2024 – Weekly Strategy Session – Today saw a huge rally in some key tech names and breadth is looking strong. Volatility should continue to come back down now that we are through FOMC and some key earnings reports are out of the way.

New Case Studies today were – CAT and NVDA Bull Put Spreads, SOXL and SLV Wheels, SBUX Directional Butterfly, TGT Poor Man’s Covered Call and RUT Sept Condor.

August 7th, 2024 – Weekly Strategy Session – Price action is pretty horrific at the moment and any rally attempt is pretty swiftly getting sold in to. Make no mistake, this is about as difficult as it gets for an option seller, so if you are surviving in this environment, you are doing well!

At any point we could get a face ripping rally, so be careful going outright short, but I do think rallies will be a good opportunity to add some bear call spreads, especially while volatility is so high.

As always, keep an eye on your overall Delta Dollars. We had a long discussion about this today that is well worth a watch.

New Case Studies were – AAPl Unbalanced Condor, COIN Bear Call Spread, KO and XLU Covered Calls, MELI Bull Put Spread, NVDA Long-Term Condor and an SPY Bear Call Spread (hedge trade).