It's November monthly options expiration.
After a fantastic rally over the last few weeks, the stock market took a breather.
This is normal and even though the market closed lower on the week, we call this an inside week.
And all that means is that bulls let off the gas and the bears didn't take back control.
With it being options expiration week, this week's action was expected.
But we can't let our guard down because we are still in a bear market.
Especially when you see the biggest fraud of all time exposed, which had to be the biggest known secret on Wall Street.
As Warren Buffett says: "A rising tide floats all boats….. only when the tide goes out do you discover who's been swimming naked."
A lot of regarded smart people have been exposed.
The Federal Reserve continues to have a hawkish tone to interest rates.
Currently, it's expected they only raise by 25-50 basis points in December.
But that could change in the next 25 days.
The CBOE Volatility Index (VIX) closed this week at 23.
That's a 1-point increase from last week.
So that means volatility remains elevated, but not as much as it was a month ago.
We will continue to see swings, but not as large.
And next week is a shortened trading week.
Markets are closed on Thursday and close early on Friday.
Now let’s talk shop.
Here’s a recap of what we did this week.
- Buy-to-open BABA Dec. 16, 2022, $95/$115 call spread
Right now, we’re holding:
- BABA Dec. 16, 2022, $95/$115 call spread
Have a great weekend and it's time to enjoy a ice cold spicy margarita - TGIF!
Joshua M. Belanger