Weekly Review JAN 5, 2025

How’s “Snowmegeddon 2025” treating you?
No joke is it…… Right now it is total “white out conditions” at my house.. Hopefully all of you and your people are safe, sound and secure
While everyone else was worried about ice melt and disconnecting their garden hoses ( stuff that should of already been done ) I was preparing premade meals, enough for at least a few days. The plan is if the power goes out I can heat them up outside on the grill
Which I got a fresh propane tank for, andddd an extra one too, and have covered up and tucked away securely
Made sure that all of my hanging bird feeders were filled up and glad I did so, those things have been jam packed with birds needing food all day today
Ohhhhh and I hauled enough firewood up to the house to make Paul Bunyan proud..,
I cut, chop and haul all of my firewood myself, always have, always will
My father is 79, yes as in Seventy Nine, and he still splits his own firewood

Seeing a theme here? It’s preparation…. Remember its the Defense that wins ball games And we here at theoptionscoach.net like winning
We won a lot this past week in the stock market, a lot……….. Hopefully you did too

Defense for us as Options traders means utilizing strategies that offer downside protection like Bull Call Spreads. For Blind Calls we don’t have that same protection but what we can do to steer the odds in our direction is when we buy Blind Calls, we do so with Options that are giving us favorable Metrics in the way of their I.V., DELTA, GAMMA and THETA
All of those are a part of a bigger picture that then creates the Options price
And in Options, pricing~~is~~everything

Was Friday a turnaround? I can’t say with 100% certainty, no one can
It sure looked good, really good, but there is an old saying in the stock market about days like Friday
“Even dead cats bounce”

Allow me to play the devils advocate, lets say Friday was the start of the turnaround, if it is we are sitting pretty with Options prices right now. After this big selloff we just had Options prices have been reset. And as I said earlier this week many stocks are trying to bounce off of their “Recognized” moving averages

Our current list of contenders is long and the Options are strong
Lets stay with 5 tonight
All Options mentioned tonight are for MAR 21, 2025
The MID will change when the price changes but we always buy at the MID
We do not buy when a stock is red or on a down day
Blind Calls have ZERO down side protection, Bull Call Spreads do
With stocks we SET STOPS and HONOR THEM

Earnings season will be here soon. Buyers should be aware of that and the inherent risks. These plays go past earnings, that doesn’t mean that you have to hold them through. You can close them at any time, and if your position goes red or negative you should

I cannot stress enough that there is no guarantee that Friday was an actual turn around or pivot day. As much as it looked like one, we would gladly welcome a “follow through day”

First and foremost WMT…. Why you ask???? Because right now WMT is not only offering the biggest bang for our buck out of the retailers, but out of just about anything out there> It’s Options prices not only fall into our “Fair Value Model” but it’s like they are giving us a free cookie too, we don’t see this everyday
Bull Call Spreads
90 / 95 MID is 2.47
90 / 100 MID is 3.62
Blind Calls
95 MID is 2.47
Earnings on FEB 20, 2025

AMZN
Bull Call Spreads
225 / 230 MID is 2.40
225 / 235 MID is 4.33
Blind Calls
225 MID is 13.25
Earnings on JAN 29, 2025

COST
Bull Call Spreads
920 / 925 MID is 2.77
920 / 930 MID is 5.58
Blind Calls
930 MID is 34.90
Earnings on FEB 6, 2025

CRS…. Fun fun fun fun….. A new addition to the team and already up over 6% as a stock since I alerted readers on Thursday morning. Our $170.00 Calls are “realleeee purteee” right now 😄 
Its DTC sits at 7, we like it when its up above 5
Bull Call Spreads
180 / 185 MID is 2.50
180 / 190 MID is 4.05
Blind Calls
185 12.60
Earnings on
JAN 23, 2025

META……… As far as pricing goes this one is almost pushing it….. The Options are still within our “Fair Value Model” but not much wiggle room left…. We like the chart and since tech typically has a good month in JAN we are looking at these
Bull Call Spreads
605 / 610 MID is 2.45
605 / 615 MID is 4.80
Blind Calls MID is 40.50
Earnings on FEB 6, 2025
Again the Options pricing is right on the edge of “Max” that we are willing to pay
If one was to take Blind Calls here they should monitor them closely for any slippage
And absolutely no way, shape or form pay one penny above the MID

Have you found this content useful? If so do me a favor please, share it with a friend so they can sign up. Also feel free to reach out, I’d love to hear what you’ve learned
See you in the morning if the power stays on… Stay safe everyone

The Options Coach