© 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.
Fade the First Move If You See This
www.oneoption.com
Buyers and sellers are paired off and the first move is often wimpy. That sets up a decent second move each day.
PRE-OPEN MARKET COMMENTS TUESDAY – The tariff news is driving the market and we can have new developments at any time. The news is fairly light this week. Bank earnings and retail sales will drive the action and we are waiting for news on semi conductor and electronics tariffs.
The market is trying to get to resistance at SPY $550. I would like to see us struggle to get there. The longer it takes… the better. That will crush option IVs and in a week or two we can consider buying puts for longer term swing trades again. In the next two weeks earnings season will kick into high gear and those reactions will also give us some sense of direction.
Global economic conditions are deteriorating and that is the primary concern. Currencies and bonds are very volatile and credit conditions are starting to get strained. The US dollar and US Treasuries have been selling off. That means yields are rising and that will put even greater strain on consumption. Retail sales will be released tomorrow.
From a swing trading standpoint, the market has bounced high enough to start considering shorts. I would like to spend time at SPY $550 before rolling over. That will give option IVs a chance to decline. Right now, put options are very expensive.
From a day trading perspective, the first move has been contested. It doesn’t matter if it is higher or lower. Buyers and sellers are engaged and during the course of that move and we see mixed overlapping candles. If you see this pattern, focus on stocks that are not participating in that move and that are heading the other way. When the market momentum in the initial direction starts to fade, you will have an opportunity to fade it and that second move has been reliable. This does mean that you need to be very patient. If you FOMO into the first move… you will regret it.
Support is at $535 and resistance is at $545.
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.