Consistent income with long term option trades.

The MARKet Update – 10/18/22

Good afternoon O$ traders!  Welcome to the second edition of a new feature I’m calling “The MARKet Update”, which consists of my thoughts pre-market/during/post-market, for what I’m thinking about specific stocks, options, and the general market for the day and/or week.

As indicated by the blue lines in the S&P ES chart above, I released my thoughts on Sunday of this range we had been bouncing back and forth in since late September, and that I indicated the large volume of buying on Thursday was real and that the subsequent selloff on Friday was not to be trusted.  Yesterday we got a continuation of the buying and today the market gapped up, and we sold our AAPL and AMZN calls for 120% and 95% gains today.

I’ve marked in yellow dashes, 3730, the next key level of supply/resistance we needed to close above in order to maintain a bullish stance.  I refrained from entering any new trades today as I was waiting to see if we’d break that level or sell off below it.   As long as we open tomorrow at 3720 or above, I feel the bullish momentum may continue which could take us to the 3800 level where we hit resistance back in early October.

I’m still keeping an eye on entering TSLA soon.  Most likely after earnings are released tomorrow after-hours to see how it performs.  Also when we get closer to that 3800 level we may have some good put opportunities to participate in SPY.