© 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.
Market Not Likely To Move
www.oneoption.com
Institutions are waiting for the next catalyst.
PRE-OPEN MARKET COMMENTS MONDAY – Last week we got a healthy dose of economic news and it did not move the needle. Earnings season has ended so that will not be a catalyst. The focus this week will be on the CPI and FOMC this week. Both will be released Wednesday.
The market has not moved much since March and it is likely to stay in a trading range this summer. The candle bodies are tiny and the volume is light. The economic soft patch in April was just that. ISM services snapped right back into expansion territory and 275K jobs were created in May. Those releases improved considerably from the April readings. The Fed will not have to ease and I doubt they roll back QT this week. Inflation has gradually been easing, but it has been very stubborn. That will keep the Fed on the sidelines. I don’t believe we will see a big net move from the news. Of course the market will have an initial reaction, but it is likely to retrace.
The momentum has stalled and we had a dip in April. The bounce was wimpy and the market barely made a new all-time high before hitting resistance. We’ve seen two-sided action. Buyers and sellers are paired off. At best, the market could float higher on very light volume. If we see that, the move would be vulnerable to a quick dip.
My market bias is neutral this summer. When the market is near the top of the range, favor selling OTM call spreads on weak stocks. When the market is at the lower end of the range, sell OTM bullish put spreads on strong stocks. Try to take advantage of time decay. Distance yourself from the action and keep your size small.
Day traders can trade from either side. If the market gaps up to a new relative high, watch for gap reversals. If we get one, there could be selling pressure the next few days. When the market dips and it finds technical support, look for up gap reversals. There could be follow through buying for a few days. Try to find one or two really good stocks each day and set passive targets. The stocks you are trading need to have heavy volume or they will not make sustained moves.
If the economic releases are stable at this level (mixed but solid) and if inflation remains stubborn, the market could stay in this general range through the summer and perhaps even until the election.
Support is at $530 and resistance is at the all-time high.
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.