Weekly Options Recap 9/26/20

Last updated on October 1st, 2020

We have seen volatility market wide pick back up the last few weeks and expect it to stay active through the rest of the year. With so many unknowns with Covid and the Elections we expect prime trading conditions for the next few months.

This past week was a great week for trading for us. Our Options programs had the following performance:

  • ETF Options Superstars: 7 Winners 0 Losers for $1030 of profit
  • Nasdaq Options Superstars: 6 Winners 0 Losers for $1163 of profit
  • Simplified Options Superstars: 2 Winners 0 Losers for $644 of profit

 

Looking To Next Week

Going into next week we expect a continuation of the back and forth price action. SPY held the 89 EMA at 324.50 as support every day last week. Should that level break on the downside we could see a quick move down to the 200 MA at 310.21.

The concern from last week’s movement was the lack of any panic selling.

We weren’t able to break the support levels on SPY due to volatility not spiking to panic levels and a lack of a volume spike as well. That allowed the dip to be bought going into the weekend as SPY rallied on Friday.

The key areas to watch next week are the tech names in the Nasdaq, the financial sector, and the energy sector.

The financial and energy names have been beat up the last month and will make a market bounce difficult to sustain if they don’t bounce higher. The financials showed signs of life to end the week so we will see if there is follow thru going into next week.

We are heading into earnings season as we go into October so we will see if we get a choppy stretch the next few weeks until earnings start to come out. This has us leaning towards using more credit spreads as they are more conservative trades.

For a complete breakdown of market conditions as well as a look at new trades that we are looking at going into next week make sure you review our Options Weekly Recap video below.

Feel free to post any questions or comments you might have or email me directly at mike@netpicks.com.

 

 

2 Responses to “Weekly Options Recap 9/26/20”

  1. Chris

    Hi Mark and Mike,

    Being open to trading both long straight options and vertical debit or credit spreads, I would personally tend to give my preference to the one service of yours which provides the best reward/risk ratio along with the best yearly income performance in the long run.

    Therefore, could you kindly advise me which trade alert service (EOS/NOS/SOS?) you would recommend to me, and its cost (per quarter/semester/year).

    Thank you in advance for your kind assistance.

    Regards,

    Chris

    Reply
    • CoachMike

      Chris it will depend on a few factors like your account size, daily schedule, and account type with your broker. Send me an email so we can help set you up with the best approach for your situation. Mike@netpicks.com

      Reply

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