Rocket041723   Rocket Equities & Options Report By Tommy O’Brien April 17, 2023   The SPY is up more than 9% from the lows of March 13th to last Friday’s high. That’s a remarkable acceleration that’s been brought about by some form of a crisis and tightening in banking. We are still a long way from 2% inflation, and the market is really ahead of itself that we are going to get a full percentage point of cuts this year. Now, earnings come into focus. Some of the regional banks are getting hammered today on their numbers. STT (State Street)...

It looks like we could have waited for the .618 retracement of the larger move, or even higher, as this market is relentlessly pushing to the upside, yet I still see many technical and fundamental factors keeping the pressure to the downside. We will hold our $409 SPY put for now and see how the day trades. Markets are higher again coming into the morning. CPI is out tomorrow morning. PPI is out Thursday morning. And then banks kick off earnings season Friday. 

We are going short this market with a SPY put which expires Friday. Banks kick off the earnings season Friday with JPM, C, WFC, among others. We are right at an area of short term confluence in the ES at the 4,127 area. Buy the SPY 409 Put that expires Friday April 14th - it is trading at about $3.15 right now with the SPY trading at $408.70.  This is a high risk trade, only risk what you can afford to lose. Our max loss is what we put up for the option, about $315 per contract.  We may hold through...

Rocket040523 Rocket Equities & Options Report By Tommy O’Brien April 5, 2023 What’s most amazing right now is the pull back in yields over the last few weeks, especially on the short end of the curve. The 2-year yield as now approaching 3.7%, and that’s from above 5% within the last month. This market right now is in complete divergence with the Fed, which has said they will keep rates higher for longer to tame generational inflation. We got ADP payrolls today at 145,000 added for March, just below the 210,000 that had been expected. Wages are still rising at...

We are going short this market with a $400 SPY put, expiring Friday. These are high risk trades as if the market moves against us we can lose our entire investment so only risk what you are willing to lose as our defined risk is the entire cost of the trade, and 100% losses are likely to occur often when trading options with only a couple days until expiration. We have traded just above the 4,040 area on the ES, which has been an area of resistance.  Buy the SPY $400 Put that expires Friday March 31st. This is currently trading...