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
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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