Attention All Option Traders.  Be Prepared for a Typical Bearish September

Tom Gentile

Posted in
Education

By: Tom Gentile
September 1st, 2023

3 mins read

If you are unaware  the month of September is one of, if not, the worst performing month for the financial markets, let me inform you now, it is.  Even if you are aware how are you preparing or have you prepared for it?

That is also something I will go over with you today and into next week.

Just because the month is seasonally one of the worst performing moths for the stock market we can still find bullish opportunities.  I will go over a bullish mindset today and over the coming week discuss with my buddy CJ Johnson, in our Power Profit Podcast, bearish viewpoints.

September Money Calendar 

I will start by showing you what the month of September looks like from the perspective of my Seasonal Pattern scanning tool, Money Calendar.

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September Money Calendar

By the way.  What is written here today is expanded a bit further in my recent video found on my YouTube Channel: https://www.youtube.com/@TomGentileTrader

Important Date to Pay Attention To

Now that summer is basically over as well the most recent earnings season, the key date to pay attention to is September 20, 2023.

This is the date we get the Federal Open Market Committee (FOMC) decision on interest rates.

Will they cut, raise, or pause interest rates?  Whatever they decide will have cause a reaction of investors and traders that we will have to assess where we feel the markets will head directionally.

More Elaboration on the Data

You can see by the data on the monthly view of Money Calendar data there are a majority of dates where the majority of candidates each day have bearish patterns on those start dates.

The Money Calendar library of stocks and ETF we have are upwards of 350.  And of those each day the data produces which of those stocks and ETF’s have bullish or bearish patterns and provides that total,

And to be a candidate they have to have a 10-year success rate of 90 or 100%.  This means 9 or 10 of the past 10 years they had to have traded higher or lower over that trading day number of days – which we plot out as days of the calendar.

One can use the Money Calendar Tool to just assess the stock or ETF average price move and extrapolate that out and trade based on seeing if the security will move that average amount this year and that sets your profit expectations for the security.

The Stocks with Bullish Patterns with Start Date After labor Day.

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Option Traders Bullish Opportunity on Marriott International, Inc. (NYSE: MAR)

Money Calendar calculates past history of a security (many of them, actually).  It then provides me the data as seen below.

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One can either entertain trading just the security or one can use the data above to then analyze an option strategy based on the historical pattern or tendency of a security.

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In my video I discuss why I am looking at an option chain from my tools, www.tomsoptiontools.com and why I further home in on options for a September 15 expiration, why I am looking at the $200 strike price and what one might expect with that scenario.

We will discuss next week bearish opportunities, but this video is great education and a starting point on how options traders can prep for what may come our way in the markets from a seasonal standpoint in the markets this September.

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.


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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.

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