Will Stocks Continue Rally? Options Expiring Today

January 20, 2023

Happy Friday!

It's been a wild ride for the stocks this week.

After today's rally, the major indices erased most of the losses from the sell-off this week.

The communications sector is seeing strong inflows and is the biggest gains so far- up 10%.

So far we're seeing a risk-on from investors.

Despite the Fed signaling higher interest rates to keep inflation from rising.

In any case: stocks are still looking to head higher.

The CBOE Volatility Index (VIX) closed this week at 19.

That's a 1-point increase from last week.

So that means volatility is on the lower end, which could help with more of a short-term rally.

But remember, we're still in a bear market.

Now let’s talk shop.

Portfolio Update

We closed our first double-digit gain in 2023 in BKR.

But that's also soured by our MLCO Jan 20, 2023, $12/$11 put spread expiring worthless today.

Unfortunately, we don’t have more time for this to play out.

Although you don't need to do anything, it will be taken off your account by the weekend.

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

On Wednesday:

  • Sell-to-close BKR Feb 17, 2023, $30/$34 call spread

On Friday:

  • Buy-to-open MRO Jan 27, 2023, $28 call

Right now, we’re holding:

  • MRO Jan 27, 2023, $28 call
  • WWE Feb 17, 2023, $95/$100 call spread

Have a great weekend and it's time to enjoy an ice-cold spicy margarita - TGIF! 

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%
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