© Copyright 2025 eOption, a division of Regal Securities, Inc., Member
FINRA/
SIPC |
Important Disclosures
950 Milwaukee Ave., Ste. 102 | Glenview, IL 60025
The information on this web site is for discussion and information purposes only. All accounts accepted at the discretion of eOption which accepts customer orders only on an unsolicited basis, and does not make any recommendations regarding any security or securities product with the possible exception of orders executed by our full service bond desk. Nothing contained herein should be considered as an offer to buy or sell any security or securities product. Online trading has inherent risks due to loss of online services or delays from system performance, risk parameters, market conditions, and erroneous or unavailable market data.
FINRA BrokerCheck reports for Regal Securities and its investment professionals are available at www.finra.org/brokercheck.
Options Disclosure: Options involve risk and are not suitable for all investors. Prior to trading options, you must be approved for options trading and read the Characteristics and Risks of Standardized Options. A copy may also be requested via email at support@eoption.com or via mail to eOption, 950 Milwaukee Ave., Ste. 102, Glenview, IL 60025. Online trading has inherent risks due to loss of online services or delays from system performance, risk parameters, market conditions, and erroneous or unavailable market data.
eOption Commissions: Broker-assisted orders are an additional $15. Option strategies involve multiple purchases; therefore your transaction costs may be significant for option strategy trades. A commission rate of $2.00 for equities and $3.99 + $.10/contract for options, per execution, applies to orders entered and filled by eOption's Auto Trade Desk and does not apply to customers who enter their trades directly into the eOption platform and are not utilizing the Auto Trade desk.
Broker Comparison: The competitor rates from published websites were verified on 05/25/2023 and are believed to be accurate, but not guaranteed. Commissions are subject to change without notice. At some firms, commissions may not reflect broker-assisted fees, orders over 1,000 shares, penny stock trades, OTCBB, pink sheet stocks or foreign stock orders. Firms may offer reduced commissions if additional criteria are met.
Blog & Commentary: eOption is neither affiliated with, sponsored by, nor endorses commentary and the opinions expressed are solely their own. Content is provided for educational and informational purposes only and eOption cannot attest to its accuracy or completeness. No information provided has been endorsed by eOption.com and does not constitute a recommendation by eOption to buy or sell a particular investment. You are solely responsible for your own investment decisions, and eOption makes no investment recommendations and does not provide financial, tax or legal advice.
More Downside Likely
www.oneoption.com
The selling pressure since the high last week has been steady and today we will test the 50-day MA.
PRE-OPEN MARKET COMMENTS FRIDAY – Since the high from last week the market has been in a steady drift lower. Great earnings and a Fed rate cut excited buyers and now some of the air is being let out of the balloon. The breakout at SPY $674 has failed and this morning we are below AVWAPQ. The 50-day MA is in range and we are likely to test it today.
The drop on Tuesday was normal and what bulls wanted to see was a nice bounce on Wednesday. That started to unfold and the market rallied into the gap from Tuesday. It looked like buyers are still interested until the last hour of trading. That’s when most of the gains vaporized. Late day selling is never a good sign and that spilled over to yesterday.
Overseas markets were down and the market will open lower this morning.
The government shutdown is impacting economic growth. Speaker Mike Johnson said he is less optimistic today than he was yesterday. That is not a good sign. I’ve heard that Republicans do have an answer to the filibuster, but they are too lazy to execute the strategy. This is NOT the nuclear option. All Republicans need to be in session and they need to “put the question” and have Democrats speak. This is how the filibuster was designed to work and the party in control wears out the other party. Everyone would have to stay there until they can’t speak and it’s over. Put your Depends on and let’s open the government!
The job survey from Challenger yesterday paints a bleak picture and without any other employment data, it is making investors nervous.
I have not been adding to positions. I don’t have many on. Most are doing well. I have bullish put spreads on MSFT and LMT. Both have breached support. I have been shorting the stocks intraday and I have mitigated any losses. I have also shorted /ES futures. I also reeled in a naked put for APLD for a tiny loss yesterday. I have not lost focus of the long side, I am just waiting for signs of support. Based on what I’ve seen, we will probe deeper.
Support is at the 50-day MA and resistance is the low from Thursday.
Content is provided by OneOption, LLC, which has no affiliation with Regal Securities, Inc. (“Regal”) This commentary is provided for information purposes only, and is not a recommendation, offer or solicitation by Regal to buy or sell securities or to adopt any investment strategy. Regal has not participated in the creation of the OneOption content and does not directly or indirectly endorse the content. Any reliance on this material is at the sole discretion of the reader.