Money Calendar in Today’s Market

Tom Gentile

Posted in Technical Analysis

By: Tom Gentile on May 13th, 2022 • 2 mins read

Past History Patterns for Bears Tough to Find

We’d love nothing more than to highlight some bearish Money Calendar patterns that we could then show a Long-Put trade on, but the setups aren’t there.

We have been highlighting bearish Call Credit Spreads in other places and the reason for that is so we can try and advantage of the market slide.

The Call Credit Spread is set up based on where we don’t think the security will be at expiration. And we keep the expiration date real close, from 7-14 trading days.

Call Credit Spreads benefit with the passing of time so each day that goes by with the security price being the same, the option should see profit as being able to buy it back to close from what we sold it to open at is less.

We want 20–30-day patterns and we just aren’t getting many; if any at all that are of that length on the bearish patterns. We want to see a positive Power Meter to show the profits over the period of days over the past 10 years are getting larger in the most recent few years vs. the 10-year average. And we like to see an avg. profit move of 3-points or better over the pattern amount of days.

Those have been hard to find so we either pass, find a bullish pattern on a stock that is in a deemed sector that is holding up better than the others in this bearish market environment, or opt for a Call Credit Spread.

Look at this bearish setup on Deere & Company (NYSE: DE). It is a 4-day pattern so not long enough for a straight long put opportunity, but short enough one can research a Call Credit Spread opportunity.

Image 24
Deere & Company (NYSE: DE)
Image 25
Image 26

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.