Weekly Recap MAR 16, 2025

There’s no doubt that you are asking yourself, the entire stock investing world is asking itself, “Was Friday the bottom?”

The short answer is that no one knows 110% for sure. It was one heckuva rally, no one can deny that. Friday I said that the market is at a “make or break” point, and it is
Prior to Fridays close the S+P 500 was down 13% from it’s highs, many consider anything over 10% to be “Correction” territory
When the market dipped in AUG 2024 it did so by 12% then recovered nicely
The dip lasted for a 4 week period, with week #4 being the biggest drop
This dip just completed its 4th week
This time is was week #3 that fell the hardest
That’s not some stat I’m repeating, that’s from the market data we here at theoptionscoach.net have been plotting out
In no way, shape or form are we saying, “Yeppp, it’s over, all green from here!!!”
On Friday the markets did get relief in part that POTUS didn’t mention any new tariffs
He did say he wants to go overthrow Greenland now, but I doubt we will have too, Elon will just zap them with a super stinger or something

There has been a lot of money lost over the past 4 weeks. IF iff iffffffffffffffffffff the recovery is here, iffffffffffffff it is, and if this isn’t it, it will be here eventually, there will be fortunes made
I literally cannot tell you the number of rags to riches traders that I know of that made their money on the comebacks after the dips. It’s worked for me more than once
This isn’t a push on FOMO, this is a “The early bird gets the worm and who wants to get paid”?
Mark Minervini, 2 time U.S. Investing Champion and was featured in Jack Shwaggers “Market Wizards” always speaks about how the greatest returns he’s ever made is by going big after giant selloffs
I know a lot of short term traders that got paid on Friday, they got paid “BIGLY”
But that was then, this is now, lets get to it:::::

1: With the UNCERTAINTY and VOLATITLITY this current market environment has we are going back to Bull Call Spreads for downside protection
2: These plays are in preparation that continued upside should occur
3: If the market does drop, and or an investor has a bearish bias then consider the Bear Put Spreads instead.. Those are for going short
4: After selloffs when the recovery happens Options traders can make more money than usual. The reason is simple: Not only is the stock price cheaper ( the least of our concern ) but the Options metrics have been reset to our favor

Again ( yes, this needs to be said again ) the market is at a “make or break”
It’s time to pop or drop, flip your quarters, which way will it go?

We do not buy on red or down days
Set STOPS and HONOR them
We always buy at the MID price or better

We have a new mention this week, it’s HWM. I found HWM while scanning for stocks that didn’t sink during the selloff. We’re also appreciative of its strong Volume on Friday

HWM
APR 17, 2025
Bull Call Spreads for the 130 / 135
1.80 at the MID

MAY 16, 2025
Bull Call Spreads for the 130 / 135
2.05 at the MID

I’ll be honest here, the MAY’s for the price with this current market might be the safer play if that is what an investor was after

CAT
We can save it!!!! 🤣 

There’s no denying that CAT has seen some better days lately… Right now it is beat up, beat down, worn out ragged, used and abused.. But we have faith…. And the fact of where it is in its current longer term box is attractive, for now:::::::::::

CAT
For Investors with a Bullish Outlook
Bull Call Spreads
APR 17, 2025
340 / 350’s are 4.70 at the MID

MAY 16, 2025
340 / 350’s are 5.03 at the MID

For Investors with a Bearish Outlook
Bear Put Spreads
APR 17, 2025
An Investor would buy the 340 Put
Then sell the 330 Put
These are 3.88 at the MID

META
For Investors with a Bullish Outlook
Bull Call Spreads
APR 17, 2025
610 / 620 are 5.65 at the MID
610 / 630 are 9.82 at the MID

For Investors with a Bearish Outlook
Bear Put Spreads
APR 17, 2025
605 / 595 are 4.10 at the MID

We don’t know where the market is going from here
We just want to be ready for what ever may come
We could open up in the morning 600 points
Or we we could open down 700
There is no rule saying that one has to be invested at all times
And defense still wins ball games
Never lose sight of what “Uncle Warren” says
Rule #1, never lose money
Rule #2, go see Rule #1

The Options Coach