© 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.
Here’s What the Market Will Do
www.oneoption.com
It will go up and down violently.
PRE-OPEN MARKET COMMENTS WEDNESDAY – During times of uncertainty you have to trim your size and your trade count. The market is news driven and the news is fluid. One minute it could be good and the next minute it could be bad. The S&P 500 had a 350 point range yesterday and option implied volatilities spiked. This morning US Treasuries are plunging and they could test the low of the year. The 3-year bond auction did not go well yesterday and 25% of our debt is financed by foreign sovereigns. Given the tariffs, they are not anxious to buy our debt and yields are rising. That will weigh on consumption.
China and the US are headed for a trade battle. China exports five times as much to the US as we export to them so the tariff impact to them will be much greater. Their economy has been in a steady decline for the last couple of years and there are signs of a credit crisis.
Tomorrow we have the CPI. Who cares? It’s funny how the focus changes. A month ago, the CPI would have dominated the headlines for the week. Now the focus is on tariffs.
Swing traders should sell far OTM naked puts on strong stocks to take advantage of extreme option IVs. Put half of the strike price in reserve and plan to take assignment. If you pick stocks with relative strength on a D1 basis, your odds of taking assignment will be low. Don’t go out more than two weeks in time and do not use this strategy if the stock is announcing earnings before the options expire. If you don’t trade options, stay sidelined.
Day traders need to be very selective. Our best set-up is a wimpy opening bounce that quickly runs out of steam. That will set up a shorting opportunity and you will be joining the down trend. I doubt that we will get any meaningful bounce until the downside is tested and until buyers show a relentless appetite for stocks. That would come in the form of six or more consecutive long green candles on heavy volume. It is going to take BIG news to reverse this selling pressure and it will have to be tariff related. There are pockets of opportunity, but you have to be very nimble. If a big gain presents itself… take it.
Support is at SPY $480 and resistance is at $525. This is a massive range and we should expect wild swings.
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.