Midweek Options Update 9/16/20

Last updated on September 20th, 2020

Coming into this week all eyes were on the Fed statement on interest rates which came out this afternoon and monthly options expiration on Friday.

Today was all about the Fed and it did not disappoint active traders. After an initial move higher after the headline hit at 2:00, markets sold off the rest of the afternoon and closed near the lows of the day.

The selling was led by the tech stocks as the Nasdaq was weak all day. The Dow, S&P 500, and Russell 2000 actually held in there for most of the afternoon before selling off into the close as well. The big test will now be to see if we get follow through into the end of the week or will the dip be bought again.

We also have monthly options expiration coming up on Friday.

We don’t typically see big market selloffs during expiration week but in this market anything is possible. It’s crucial to keep the risk small in this environment. There is tremendous opportunity but it’s important to take a larger number of small trades.

That way you can spread the risk into different areas of the market and get the diversification that is necessary.

In our Midweek Options Update video we take a look at key markets like SPY, QQQ, IWM, AAPL, AMD, SLV, GLD, XLF and XLE.

We cover where we stand on these markets on open positions as well as walk through what we are looking for going into the end of the week.

Take a look at the video below for the full recap and let us know if you have any questions that we can help with. Mike@netpicks.com.

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