Pre Market JAN 24, 2025

Stocks are “reddish” in the Pre Market today
Not by much, but the majority are under water

Remember yesterday how I mentioned we welcome “new friends”?
Also how I said I was gathering the info for our next Options plays?

Well inadvertently, wasn’t looking any “newer” friends, just the ones we already have in the way of Banks, and then one popped up, it’s MMM

MMM beat earnings this week. They are also one of the few stocks that are green here in the Pre Market

Before we get to a possible play lets talk about in part why I’m so stoked for this trade
In Options we have something called “The VOL Crush”
Or “The Crush” for short

Prior to earnings or a major announcement I.V. will elevate
We here at theoptionscoach.net have an exact reference point that is in on our 17 point checklist. If an Options I.V. is above that point, we do not enter
It’s percentage based and varies stock to stock, percentages are math, math doesn’t vary

Well after a earnings call or event, I.V. then “deflates” or more commonly said “Resets”
Even if a stock was $100.00
But is now $110.00 post earnings
The new I.V. setting allows us to profit more percentage wise from there on out because we bought at a more favorable I.V. because the I.V. was “Reset”

C’mon investors, say it with me 😁 
~~~ In Options, pricing is everything ~~~

One thing to consider is MMM has not had a pullback yet since it Gapped up Tuesday
It has had some pullbacks on the day for 2 days this week, but nothing back to the Gap
We would love to see some profit taking first, maybe 3% or so then continue it’s course back north

MMM is a rare one we do not see often
There are a lot, I mean a lottttttttttttt of possible Options trades for it
I don’t have enough time this morning to list my Top 3 favorites but will Sunday night
With this one I actually found 7, yeah, we don’t see that every day

Two for right now that we are looking at is:

FEB 21, 2025
Blind Calls
1.50 are 3.20 at the MID
These are nearer date so they carry slightly more risk
The pricing however along with the strong O.I. could prove to be worth our time


APR 17, 2025
Blind Calls
160 for 2.62 at the MID

Like I said I’ll be back on Sunday night with the rest
MMM is just getting started here and it may need a rest before it’s next advance
A few of our other “friends” are flip flopping green’sh here now

We do not buy on down days or when a stock is red
Set STOPS and HONOR THEM

S+P 500 Support is now at 6,100
That doesn’t suck
Time to grind

The Options Coach

The AFC Championship game is this Sunday
#GOChiefs!!!!!!!!!!!!!!!!!!!!!!