By: Tom Gentile
on January 3rd, 2023
Tomorrow is the last day of the pattern known as the Santa Claus rally, which is the last 5 days of a year and the first two trading days of the new year.
Where Santa has much work to do to end up positive over this amount of days in the pattern, one can also say the stock market has much work to do to recover from a bearish 2022.
We will educate you all more of what we see for the stock market, the different sectors of the market and then stocks within those sectors as the year progresses.
To start the year let’s get a look at the options activity from our Morning Reports Lists to see where options traders are hanging out to start 2023.
Take a look at these lists and you will see they are categorized by different perspectives.
These are not recommendations as we are not a brokerage firm, nor am I or any of my team taking the role of a Registered Investment Adviser (RIA).
We do encourage you all who have access to these lists in my software, www.tomsoptiontools.com to discuss with your RIA’s or brokers to see if they fir the suitability for you in your portfolio and your short and or long-term financial goals.
Morning Report Lists
Interesting What is Shown on Apple, Inc. (NASDAQ: AAPL)
The Highest Option Open Interest and Highest Option Volume lists show an AAPL put option at a different strike. Puts suggest a bearish viewpoint on AAPL.
But if you look at the Unusually High Call Option Volume list it shows an AAPL call option.
This suggests maybe there is a contrarian view on some option traders that despite the bad news on Apple, Inc. today and the fact it traded down 3% on an intraday basis.
A contrarian view is one that goes against the majority or prevailing opinion of the masses. Where everyone thinks a stock will trade down, and data suggests things may not go well for the stock, a contrarian thinks the majority nay be wrong and they go the opposite way. The anticipation is the majority will be proven wrong or maybe that some will change their opinion and when the buying steps back in their options or stock will trade higher eventually.
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.
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.
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