An Option Trade Education with the Stock Market Volatility 

Tom Gentile

Posted in
Current Events

By: Tom Gentile
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

Toms Option Tools scan the markets for bullish and bearish trade opportunities using our proprietary scans and strategy algorithms. TTR Darknet finds bullish entries based on triple stack channel collisions. Money Calendar identifies seasonal patterns with at least 90% accuracy looking back 10 years. Weekly Cash Clock finds short term opportunities that last a week on average. Microcurrency Trader applies Darknet technology and moving averages to cryptocurrencies. Velocity Trader utilizes volume spike and Velocity indicators on custom stock lists. Quantum Scripts scans the markets for momentum acceleration signals and employs Quantum noise filters. Optimal Trader finds directional pre-earnings opportunities that are optimized for entry date, stock movement, and volatility surge. My Trades tracks the profit/loss of your trades, displays stock charts and risk graphs, creates new trades, and edits existing trades. Morning Report provides top 10 option rankings in 6 categories each day.


Disclaimers

Stock and options trading has large potential rewards, but also large potential risk.

You must be aware of the risks and be willing to accept them in order to invest in the stock and options market. Do not trade with money you cannot afford to lose.

This is neither an offer to buy/sell/ or recommend a particular stock or option.

Hypothetical or simulated performance results have certain inherent limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not been actually executed, the results may have under or overcompensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with hindsight.

No representation is being made that any account will or is likely to achieve profits or losses similar to those shown.

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