An Option Trade Education with the Stock Market Volatility 

Tom Gentile

Posted in Current Events

By: Tom Gentile on February 17th, 2022 • 2 mins read

Stock Market Volatility

Tensions between Russia and Ukraine remains an important story that is playing out over the financial news networks continuously. The markets have more to deal than that such as pending rate hikes due to high inflation risk.

In one sense it seems the markets are pricing in the story on rate hikes, but the Russia/ Ukraine concern and the uncertainty with that situation is adding to the volatility we are seeing in the stock market.

While Russia does the Hokey-Pokey with Ukraine: They are sending in troops, or they are not sending in troops and all the while they are positioning their troops all about…

It makes it a challenge to really want to hang one’s hat on a pure directional trade no matter what scan or analytics tool one is using. The Money Calendar idea supplied today will highlight a trade idea where the stock only needs to move a low percentage amount for a chance at a really nice profit. 

New Opportunity for a Money Calendar Setup with a Start Date of February 18, 2022

Things have been so bullish overall the past 10-years, bearish setups in Money Calendar are hard to come by. That changes today as there is a bearish pattern / past history of trading lower on LULU, so let’s go try and see if there is an option trade that looks good.

Lululemon Athletica, Inc. (NASDAQ: LULU)

Here’s the Money Calendar data, which is the catalyst for the option trade that will follow:

Lululemon Chart Feb 17 2022
Charts Feb 17 2022

Options Strategies to Consider

The expectation from this Money Calendar Data is for it to trade lower over this period of coming days.

One can short the stock, Buy to Open Puts, Buy to Open a Put Debit Spread or Sell to Open a Call Credit Spread.

It is best to talk this scenario over with your broker to discuss which option idea is best suited for one’s portfolio.

App: Toms Option Tools

Market Insight articles may show images of lists of stocks meeting a variety of options parameters like Unusual Call and or Put activity or Expensive IV found on my app Toms Option Tools.

Other times I will have other charts may work to amplify my educational points. 

Those options data lists, however, can be found on my app Tom’s Option Tools. Use your device to search up and download this app and get free access to the Morning Reports section of the app.

Other parts of the app are available at a premium subscription rate, but the Morning Reports Lists are yours free.