EOY Review

How was your New Years Eve? Do anything good? I ended up going to a buddies house that had a real dinner party, it was an actual sit down, get out the fine China, 5 course meal. Not my typical Tuesday night I promise you that. Sure hope that I used the right forks along the way 😁 

Over the last few days I have written, rewritten the wrote again the EOY “address”
I have no doubt that I did at least 8 drafts
Here’s the deal, no games, no junk, no stuff
Anyone that has been reading for the past 6 months knows that 2024 was an incredible year for stocks, just knock it out of the ball park home runs this year. That’s not to say that there weren’t a few hiccups along the way, there were, but in the long run the Bulls won “bigglee” ( That’s a kool kidd “stonk” term if you didn’t know )
The S+P 500 closed up over 20% for the second year in a row finishing at 23% on the year
A 3peat coming? We’d all welcome that
Here’s a “funky” stat:
Historically speaking, in the month of JAN, both the DOW and the S+P don’t exactly perform their best. Both have finished negative for JAN the past 5 years. The QQQ’s however typically close up 1.5% on the month meaning tech stocks have lead to start the new year the past 5 years in a row
Historical performance does not guarantee future success, but we shouldn’t ignore any fresh signals should they come

2024 was great for Bulls. With Options buying Bull Call Spreads then adjusting as our positions moved proved to be a formidable strategy. That along with Blind Calls proved to serve us well, in Stocks like CAT, GEO and SFM those strategies served us very very well

2024 is gone, 2025 is here, or like I like to say “That was then, this is now”
Futures are down as we speak, it could easily be everyone has been out of the office all week, that is plausible. But what if this down turn isn’t over?

Buying Bull Call Spreads is NOT the only Options game in town
Should the market turn down for a while we are going to transition from buying spreads to selling them. We could reverse our Bull Call Spreads into Bear Call Spreads, that’s a option. We could also do Bull Put Spreads ( yes that’s a real thing ) And we may take some this year, but the plan is to continue capitalizing on the market regardless of the direction it takes. That means up, down and even sideways
Of the 3,905,874 reasons why Options are superior to stocks, and Options traders will always make more money than stock buyers, being able to profit regardless of a stocks trend direction is probably the greatest advantage of all when it comes to Options

The one thing that I would like to say is that looking back over the past year is not as important as where we go from here
We are still fans of strength, but should the market temperature alter we will adapt accordingly
This is not “Ohh we’ll figure it out when we get there” No. This is being planned right now with what strategies we will employ should we need to make any adjustments

Tonight I’m sharing 4 Heat Maps
The One Week
The Four Week
The Twelve Week
And The One Year

All of you are smart individuals, I say that not because you read this, but because I know you read it to further your stock and options education
Take a hard look at the 4th Heat Map, The One Year, 2024, it speaks for itself
2025, we welcome you

The Options Coach