Weekly Recap SEPT 21, 2025

How was your weekend? Did you get outside and walk in nature? Fall is here, that’s the favorite season for many, especially nature lovers. Historically NOV is a great month for many stocks, especially tech stocks, but we aren’t in NOV yet, and the leaves haven’t started to turn either
Stocks are looking a little extended here, and yes, yes we keep making fresh ATH’s but its been with lower Volume. That typically means a set up for a pullback
That makes us here at theoptionscoach.net “Cautiously Optimistic”

Friday was “Quadruple Witching” To make a long explanation short that means 4 different types of expirations all happen at once, and a lottt of money is at stake

Here’s how the 3 major indexes faired
$DJI ( ▲ 0.37% )  
$SPY ( ▲ 0.5% )  
$QQQ ( ▲ 0.68% )

When you look at the 3 month Heat Map your going to see some serious green
A few of the names are long time “friends” of ours
Names like
$AAPL ( ▲ 3.2% )  $AMZN ( ▲ 0.11% )  $CAT ( ▼ 0.09% )  $GOOG ( ▲ 1.15% )  $JPM ( ▲ 0.5% )  $META ( ▼ 0.24% )  $NVDA ( ▲ 0.24% )  $TSLA ( ▲ 2.21% )

Last week I wrote pretty in depth about META and TSLA….. They both performed well this week. But our newest friend $RDDT outdid both of them

Lets talk about that one for a minute:::
On Friday RDDT was down over 6% at one point, it made a pretty good recovery and even flirted with closing flat at one point
That matters, is the “shake out” over? Or is a bigger pullback coming?
Either way we are bullish on RDDT for the long run
There’s a reason we have rules in trading, to save us from ourselves
When we use those rules

One of our “hard and fast” rules is to not buy a stock, or Options on a stock to the long side, if a stock is down or red on the day. With that being said I’ll be looking for it to go green before adding anymore to my portfolio
RDDT reports earnings on OCT 28, 2025

Here at theoptionscoach.net
We don’t chase stocks
We don’t go long if a stock is red
We buy at the MID price or better
We set STOPS and HONOR them

RDDT
NOV 21, 2025
The Long Calls at the 260 hold an Open Interest of 1,899 and are 19.50 at the MID
The 280’s O.I. is 1,722 and its MID is 10.80


JAN 2026 ( yes I said 2026 )
The Long Calls at the 300 Strike have an Open Interest of 1,482, the MID is 32.50
The 320’s hold 1,728 in O.I. and are 26.70 at the MID
One thing of IMPORTANCE is that the JAN’s have an elevated Implied Volatility Ranking. That makes them higher risk with any down turns. The “saving grace” if you will is that they’re longer dated

Right not doing Bull Call Spreads on RDDT is out of the question unfortunately
The reason is the Bid / Ask spreads are not in our favor at this time
If that changes I’ll let you know ( believe me, I’m watching them )

RDDT could possibly go on to do what us what CAT did a year ago
If your new here welcome, about a year ago we had over 970% returns with our Options on CAT in under a month
This week CAT closed up over 8%.. Wowwww….

Recently a buddy of mine that works in the markets and was an exchange trader complimented me about my Options knowledge. Though he worked at the exchanges he didn’t do so with Options, and the verbiage isn’t something that he’s always familiar with

He referred to my understanding of Options as “Super Secret CIA S—T”
This isn’t a ”humble brag” this is an “okay, got it” moment

So what I’d like to do is start sharing what I feel are useful and important market terms to help you grow with your knowledge base of Options. A lot of the stuff I talk about is real life application’ like “Trader Tips” if you will, but this is to help you grow your knowledge base

“Knowledge is Power”
~ Sir Frances Bacon~ ( Yeppp, that was his real name, not Bob, 😄 )

From “The Google”
Quadruple Witching: Quadruple witching is a quarterly event in financial markets when four types of derivative contracts expire on the same day. This simultaneous expiration can lead to higher-than-average trading volumes and increased market volatility, particularly in the final hour of trading, known as the "witching hour”

The four derivative types that expire are: 

• Stock index futures: Agreements to buy or sell a specific stock index at a predetermined price and date.

• Stock index options: Call and put options based on a stock market index like the S&P 500 or Nasdaq 100.

• Single-stock options: Call and put options on individual stocks.

• Single-stock futures: In the United States, single-stock futures were delisted in 2020, making the event effectively "triple witching," but the original term "quadruple witching" remains widely used
  
  
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