Pre Market APR 7, 2025

Stocks are red in the Pre Market today
While many are mad, confused and well in disbelief, I see a sliver of hope
First off the S+P 500 is way off of the overnight lows, back half of what it was down
Secondly when we look at our 25 year chart we can see that price ( as of close on Friday ) is now closer to support than resistance… The selling may continue today, but it is at a much slower pace now

Normally we try to go at least a month out, sometimes 45 days or so until DTE
The reason I have stuck with the APR 17, 2025 date and not adjusted yet ( some new dates could start today ) is that we want to capture the volatility while we can
And with the shorter time frame we can get paid a great deal more
More risk? Sometimes, but with the extreme level of volatility the moves have been so big, so fast that the profits have been there
For investors that want to profit this is not the time to take their eyes off of the ball
We are literally one announcement away that could cause a big bounce, or another tariff from a further drop. Either way right now is for anyone wanting to make money, or preserve what they have, we are definitely at a must watch point here

Last night I mentioned that we would be adding PLTR to our list
As of right now it’s down over 9%. Strangles would of been great for that one
Personally I think prices are gong to change quick today, up or down, prices are fluctuating and moving a lot for Pre Market action, and I mean a lot
Price stagnation is the mortal enemy of the Strangle strategy
The entire reason we went to them was because of the volatility causing movement
If prices stall, or stop moving, we will need to adjust
The FED is having some kind of meeting at 1030 EST time today to address the current market and it’s affects on the economy
What could come of that who knows, they can’t stop tariffs

On Friday the VIX hit a ATH at 45

Right now it honestly looks like stocks want to try and go green today, no joke….. lol…
But as we all know, looks can be deceiving and we are not counting our chickens before they hatch
SPY is down less than 1.7% here, it was down 3% last night

Even PLTR is clawing back, it’s now only down 6.5%
A upside push in stocks could happen fast if it happens
Big big biggggggggggggggggggggg money will be made from down here if we bounce
There will also be more short term, in and out very veryyyyyyyyyy fast get and go trades right now. Traders will capture short moves with HUUUUGE profits, up or down
Movement, they are buying and selling here in the Pre on movement
Many will buy heavily on any bounces

Today we are only going with one

SPY
Strangle
APR 11, 2025
Buy the 490 Put
Buy the 500 Call
That could be 100% gone by the time the market opens
Ultimately we want price at 495’sh for entry

S+P 500 Support is 5,000
Time to grind

The Options Coach