Weekly Recap, FEB 2, 2025

Unless you were out at the beach with life turned off or hiding in a cave you already know by now that on Friday President Trump announced tariffs against Canada, China and Mexico

The markets reacted swiftly with what is being called “The Trump Dump”
This could just be the start, Sunday night Futures aren’t open yet but traders every where are already talking about taking Short positions

The markets need pullbacks, they are not only normal but they are healthy. Pull backs allow prices to “reset” and can offer investors 2nd chances at fresh entries

A “Self Fulfilling Prophecy” I’m not claiming, but you already know that I have been saying 2025 is going to be a “Stock Pickers Market”
And if you recall, just 3 weeks ago I said:::::::

“The pullbacks will be bigger and faster in 2025”
On ~ Friday ~ we ~ witnessed ~ that ~ firsthand

This weekend I did something that was long overdue
I cleaned out the spare deep freezer in my outside garage
I did so because I just bought a giant part of a cow and I need to store it now
So as I threw stuff away that was way outdated, freezer burned, or just not looking good anymore, I was then able to clean the deep freezer spic and span

That might be us with with our Model Portfolio right now
There’s no loss of confidence with most of our stocks, but a few just aren’t cutting it
AAPL surprised many with its selloff, one thing it has is it did bounce off of the 200 SMA area ( we like that, for now )
CAT doesn’t have the strength it did, JPM while okay, is just that and not much more

Also you may recall how I said that we could be adapting strategies to match the market
With many stocks going rangebound we as Options Investors can profit tremendously from the stock investors who “Hold and Hope”
How we do that is we shift from buying to selling Premium
Selling Premium is made to make money directly off of those that “Wait, watch and see”
Time, remember me talking in the past about time? Can you go to the store and buy time?
So lets say that stock XYZ is trading at the 100 area for 3 months
It’s 98 one day, 102 the next
But never really breaks above or below, it stays stuck like Chuck in his truck out in the yuck and the muck
As Options Investors we can then utilize strategies to capitalize off of those stock holders that refuse to sell their stock ( may the most adaptable trader win 😁 )
Selling Premium is not get rich quick, not at all, but it is very consistent
And it is made for sideways markets

We don’t know yet, this selloff could stabilize and we could then resume north
But we here at theoptionscoach.net are not the type to just “Wait, watch and see” No thanks, pass on that

Right now I’m looking at stocks that are setting up for premium selling
In the meantime we remain adaptable and stick with our current strategy of “Stock Picking” and stay with stocks that show continued strength with the best Options

Stay tuned, there could be more on that very soon

The Options Coach

Here’s how our stocks did this past week
AAPL +5.93%
AMZN +1.21%
CAT -8.9%
GOOG +1.83%
HD -0.61%
JPM +0.93%
META +6.44% ( it’s riding the top of it’s long term channel here, bigger volume now needed )
SFM +8%
SN +1.08%
WMT +3.59%

Notable Mentions
NVDA -15.81%
TSLA -.50%