Weekly Options Recap 9/26/20

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.