Pre Market FEB 13, 2025

Stocks are mixed, flat to up and down in the Pre Market today

Last night I was looking at some charts
COST came up and we are already in it, it’s not just COST, but lots of other stocks right now are stuck on their charts
Any time a stock makes a new ATH that’s strength, stocks don’t make new ATH’s because they are breaking down. What happens often times after a fresh high is profit taking, which means a pullback. Most of them are mild unless it’s on earnings, those can be bigger

As I said many stocks look like COST on the charts right now. At the top of their boxes or in this chart top of its channel
As a “Chartist” I look at it and say “Top of the channel, time to sell” we have bought the majority of our stocks when they bounced off the bottom of their channels
As an “Options Investor” I know that math does not lie… An Option is either being bought or its being sold
Right now COST Options are still being bought, and heavily for MAR 21, 2025 at the $1,080.00 and the $1,100.00 Strikes
And for some weirddd funnkee clunkeee wunkeee reason they are also being gobbled up at the $1,380.00’s????? They are cheap there but the Bid / Ask is pretty far apart, that could change

What we would like to see, not just with COST, but with all of the stocks that are now stuck at the top of their ranges, is to get some stronger volume and then break north and even go on to create new channels. That is strength on strength

Sunday’s Weekly Recap here at theoptionscoach.net highlighted all of the Options that we like on COST
Those are still in play, the only thing that has changed is the MID prices, those you can get in your Options chain

COST is flat here in the Pre, we don’t buy when a stock is red or on a down day

S+P 500 Support is 6,028
Time to grind

The Options Coach