Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Stocks

Net Put Premium And Options Expiration Week Suggest A Huge Rally Ahead

by October 16, 2022
October 16, 2022
Net Put Premium And Options Expiration Week Suggest A Huge Rally Ahead

I love trading during options expiration week. It’s the one time when I have a pretty good idea of which market direction would likely benefit market makers. It doesn’t provide us a guarantee, but, in my opinion, does tilt the odds heavily in our favor. I remember the current S&P 500 chart (significant downtrend) being in a similar position in March 2022, after the S&P 500 had been devastated for weeks – and then magically soared as net put premium to the tune of BILLIONS and BILLIONS of dollars completely vanished. As a quick reminder, here’s what the S&P 500 looked like heading into that options expiration week and where we stand now:

Again, there are never any guarantees, but ANY TIME we see selloffs like the one we’ve seen in the past month, we typically bounce. That’s what the blue-dotted vertical lines above highlight. I used a 21-day rate of change (ROC), which is the equivalent of one month, and each time we see this ROC near or move beneath -10%, we can begin to look for a rally. The fact that it’s options-expiration week upcoming only adds to the odds of a likely reversal.

The weekend before options expiration, we send out a Max Pain Excel spreadsheet to our members, highlighting which stocks in the Dow Jones, NASDAQ 100, or our portfolios show directional clues based on where they currently trade vs. their “max pain” levels. Max pain simply refers to the price point where in-the-money calls would offset in-the-money puts. Put another way, it’s the point where market makers can make the most money and screw the most options traders. Heading into options-expiration week, EVERY TRADER should at least be aware of this price point.

On Monday, I’ll be providing all of our FREE EB Digest subscribers a copy of what we send out to EB.com members, highlighting which way well over 100 stocks are likely to trade this week. If you’d like to receive a copy and you’re not currently an EB Digest subscriber, simply CLICK HERE and enter your name and email address. There is no credit card required and you may unsubscribe at any time.

Happy trading!

Tom

0
FacebookTwitterGoogle +Pinterest
previous post
EXCLUSIVE – ANDREW WEISSMANN PART VII: Weissmann Used a Corrupt FBI Agent as a Witness Who Later Was Charged with Several Murders Related to Case
next post
Unhinged Climate Activist Vandalizes Luxury Car Aston Martin Dealership with Paint to Protest Oil Production (VIDEO)

You may also like

Is the Bull Market Back? Watch These Charts

June 9, 2023

Performance Profile Paints Different Pictures for Commodity and...

March 28, 2025

4 MACD Patterns That Will Give You an...

August 28, 2024

What to Ask Before Each Trade

August 11, 2022

Are The Financials Sending Us A Major Warning...

April 14, 2024

The Most Important Breadth Indicator to Follow

January 21, 2023

The Hoax of Modern Finance – Part 1:...

December 13, 2023

GNG TV: Enough Leadership for Bull Market After...

January 19, 2023

MEM TV: Growth Stocks Fade While These Areas...

March 9, 2024

Anticipating More Inflation

September 30, 2022

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Why More Homeowners Are Investing in Their Gardens and What Businesses Can Learn from It

      June 24, 2025
    • How to Use Fibonacci Retracements to Spot Key Levels

      June 24, 2025
    • ICE Is Arresting 1,100 Percent More Noncriminals on the Streets Than in 2017

      June 24, 2025
    • The Safety Risks of the Coming AI Regulatory Patchwork

      June 24, 2025
    • Ending the US Department of Education: Status Report

      June 24, 2025
    • Experts gauge success of ‘bunker buster’ bombs dropped by US on Iran nuclear sites

      June 24, 2025

    Categories

    • Business (8,299)
    • Investing (2,069)
    • Politics (15,781)
    • Stocks (3,166)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved