The Bearish Stair Step Pattern Continues

June 3, 2022

Dear Trader,

The stock market often reminds me of living in Chicago. 

One day it’s 80 degrees and then it’s 40 degrees.  

But markets move and when you’re on the right side, it’s a great feeling!

Which allowed us to close out another 100% real-money gain the second week in a row.

On Wednesday, the FED started its quantitative easing (QE) campaign to unwind the balance sheet. 

Some talking heads out there are saying the bottom is in, but that’s noise. 

We continue to be in bear market and we need to choose our spots and take chips off the table quickly.

Let’s talk about the CBOE Volatility Index (VIX) which closed at 24.

That’s unchanged from last week's reading that indicates we will continue to see 100 point swings in S&P 500. 

Now let’s talk shop.

Portfolio Update

Here’s a recap of what we did this week.

On Monday:

No action.

On Tuesday:

No action.

On Wednesday:

Sell-to-close GT June 24, 2022, $12/$14 call spread

Buy-to-open MRO July 15, 2022, $33/$37 call spread

On Thursday:

No action.

On Friday:

No action.

Right now, we’re holding:

  • FB June 17, 2022, $240/$255 call spread
  • MRO July 15, 2022, $33/$37 call spread

Have a great weekend and enjoy a fresh spicy margarita - TGIF! 

To your wealth, freedom, and options!

Joshua M. Belanger

Joshua M. Belanger
Joshua Belanger is founder of CounterVest and the editor of Hot Money Trader. He has been providing ordinary investors blockbuster returns since 2008. In 2018, the average return of Hot Money Trader beat the markets by over 15%