By: Tom Gentile
on October 25th, 2022
Yesterday we highlighted a 60-day look at the SPY and where it may for to from a Fibonacci Retracement perspective.
We pointed this out for everyone to then establish if they will remain bullish in anticipation of the Fib level resistance areas getting hit.
The decision at the point one of those Fib levels gets hit is will the markets trade higher to next upper-level Fib price area or will a Fib level become resistance and trade lower.
Below are the Morning Reports Lists
The above two lists show what options are expensive, meaning their options are higher than normal, which could be as a result of Implied Volatility (IV), in the options price cranking higher.
One factor accounting for a spiking IV is the security is coming up on an earnings date.
The IV is a result of an influx of speculators coming in to trade them in anticipation of either a good or bad earnings report and no matter which it is the expectation of options traders is a big move will happen in either direction based on what the company announces.
The next set of lists are where bullish and bearish options activity is taking place.
They may be cheap or expensive and you can cross with the other two previous lists to see.
The option activity below is what you al and your brokers can use to assess what trades may be suitable to the portfolio based on you and your financial team’s assessment for market direction.
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.
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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