What Are Weekly Options and Why Are Weekly Options So Popular?

[Option Beast]( 03/06/2021   |   [View in browser]( --------------------------------------------------------------- [What Are Weekly Options and Why Are Weekly Options So Popular?]( The stock market provides individuals with an incredible variety and volume of investment opportunities and continues to gain attention from amateur and retail investors worldwide. Specifically, trading options has become a particularly popular derivative amongst investors. Equity options enable investors to have the right to purchase or sell a stock at a set price and with a set expiration date. Investors can choose to trade between monthly or weekly stock options, both of which vary in terms of specifications... Understanding weekly options and how traders can make the most out of them is essential to know when trading weekly options. [More...]( SPONSORED CONTENT [Do You Have Zero Experience Trading?]( Quick!....get this free e-book that was designed to teach beginners how to trade options while you still can. Want to start trading with a small account? Got you covered on that also. Chuck Hughes has taught thousands of beginners how to be successful in trading. [Click here to get the e-book while you still can.]( [REFLECTIONS.... The Market Stalls by David Sager](#) It was a mixed week for stocks, as the Dow wandered aimlessly. Even the somewhat positive outlook; vaccines flowing, and positive economic news on all fronts, was tempered at week's end, with major indices showing modest gains or slight declines. Overall the general attitude was 'laissez-faire,' as individual blue chippers saw some noteworthy gains. Prices of government bonds fell, sending the yield to the highest level in nearly 9 years. The yield on the 10 year US Treasury note briefly touched 1.61% Thursday. That compares with a yield below 1% at the start of 2021, while the 30 year US treasury also rose with a yield of around 2.14%. Large-cap US value stocks outperformed large-cap growth counterparts in the last week..A value benchmark rose 0.3% while a growth benchmark fell 1.7%. US retail sales rose 5.3% in January (and expectations) for February and March could be near the same or even a few percentage points better. The housing market continues to be a catalyst for the broader US economy, as a shortage of homes for sale continued to push prices higher in January, with sales jumping 24%. All economic indicators point to a solid trendline of demand in the housing market to remain strong the rest of the year. Lastly, the averages.....The Dow Jones Industrial Average fell 561,95 points, or 1.8% to 30,932.37 this past week, while the S&P 500 index dropped 2.4% to 3811.15, and the tech heavy Nasdaq Composite slumped 4.9% to 13,192.35. Usually, we can look to a big event or a slice of economic news that shook the indices, but that wasn't the case. The data was solid with weekly jobless claims dropping more than expected, durable good orders rising more than forecast, and personal income moving strongly upward. It turns out that rising treasury rates do matter, investors can't look the other way too long. Johnson & Johnson's single dose Covid-19 vaccine has worked safely and should be authorized for US use in a matter of days. The advisory committee's unanimous support of the authorization is the last step before the Food and Drug Administration issues a decision, which could come by Saturday, March 5th. The vaccines's effectiveness and safety are "way over the bar," said panel member Eric Ruben, editor in chief of the New England Journal of Medicine. "The demand is so large that this vaccine clearly has a place." A single dose regime offers the ability to vaccinate a population faster. Johnson & Johnson said it will deliver the 1st 20 million doses in the US by the end of March. The vaccine was effective across demographic subgroups; in the large study (44,000 plus subjects), of J&J's shot included racial groups such as blacks, latinos and Asian people, and age groups such as 60 years and older. Add J&J to the already available vaccines from Pfizer and Moderna, and finally major inoculations will definitely blunt and eradicate this horrific pandemic. Oil is finally 'coagulating'....Leading oil producers are meeting to discuss production levels in early March, to hopefully determine allocations from the majors- such as Russia, Saudi Arabia and the US, now that supply and demand are evening out. Saudi Arabia and Russia, two of the largest producers are attempting to 'balance' rising crude prices, and determine a way to tighten global surplus. The present strength in oil prices may encourage producers to consider lifting output. The pandemic has impacted these countries greatly due to decreased demand, and if oil goes higher, "these oil rich economies will need to cash out," Says Stan Bharti, founder of merchant bank Forbes & Manhattan. "The biggest incentive for OPEC and their Russian-led allies, collectively known as OPEC4, to raise production will be the need to take advantage of the high-priced oil," Mr. Bharti said. Recent prices in the $60's have reached their highest levels in more than a year. Look no further than the pump where per gallon prices are $2.69 to $2.99. Presently Texas crude is $63.53 a barrel (2-26-21), highest since May 2019. Early January last year Saudi Arabia agreed to unilaterally cut output by one million barrels a day in February and March, in a move that would offset higher production from some allies, particularly Russia. It worked. As the Covid-19 pandemic declines, transportation demand for oil has increased and oil prices have gradually moved higher. Bitcoin slid last week, from near $57,000 to $45,351 on February 28. As the leader fell, so did the likes of all the followers, of course we didn't have any 'personalities' jumping in with their, falling unfounded comments. After hitting a staggering valuation of 1 trillion last week, a short dive took valuation to 900 billion, still an awesome number. Smaller digital tokens like ethereum fell 11%, while XRP sank 17%. Janet Yellon, Secretary of the Treasury made many derogatory remarks about virtual cryptocurrencies this past week, as she warned about its use in illicit activity. She also sounded the alarm on its impact on the environment, and warned about the risks for retail investors buying Bitcoin. Bitcoin is up 360% in the last 12 months, and 60% since the start of the year. Bitcoin has gained traction from momentum investors in part because of the perception that it is a store of value-similar to gold. Bullish investors claim the cryptocurrency can act as a hedge against rising inflation. In any event, cryptocurrencies have livened the interest in a new wave of trading. RUMBLINGS ON THE STREET Charlie Munger, Berkshire Hathaway Vice Chairman, This week took a swing at Robinhood's influence--and Mr. Buffett's partner didn't mince words, WSJ "I hate this luring people into engaging in speculative orgies," Mr. Munger said. Warren's 97 year old vice chairman and business partner, told the Wall Street Journal from his home in Los Angeles on Thursday. Robinhood "may call it investing," he said, "but that's all bull shit." Dwyfor Evans, head of macro strategy for the Asia-Pacific region at State Street Global Markets in Hong Kong, WSJ "What has happened in recent weeks is the markets have to reprice expectations of the Federal Reserve's rate hikes," said Mr. Evans. He said the pick up in bond yields would have a knock-on effect on areas such as corporate lending and mortgage rates. "That is why equities will come under pressure here, because rising yields will have some impact on the real (economy) and earnings might have to slow," Mr. Evans said. Jeff Emmelt, former chairman of General Electric, Barron's "Elon Musk could announce an electric airplane tomorrow. He can. He has the name." Felix Zulauf, Private Investor and Publisher, Zulauf Consulting Newsletter, Barron's "Whenever there is a selloff(in gold) I snap up some gold mining stocks as they are cheap long-term options in the gold price". Speaking about Bitcoin, "I don't believe that Bitcoin will ever make it as money used in daily payments. It is too complicated, the price is too volatile and 'mining' requires too much energy. But as long as people think of Bitcoin as a safe store of value the price could go higher, and it would become a mania. At the peak of the tulip-bulb mania (in the 1630's), the most expensive tulip cost as much as a house. That suggests Bitcoin could reach $1 million some day. But tulip bulbs trade today at only $10.00 a dozen. [Ford Stock: Will Ford Options Shoot Higher Like Rocket Stock?]( It looks as if the Reddit/wallstreetbets crowd is at it again. In Tuesday's column, we mentioned the unusual option volume in Rocket Companies (RKT) and surprise, surprise, that stock was up 71% yesterday. We were looking at the March 19th 25 strike call at around $1.70 which then traded as high as $18 yesterday for a gain of 894%. Wow! Some other stocks with unusual option volume yesterday were Ford Motor (F), AMC Entertainment (AMC), Palantir Technologies (PLTR) and once again ... GameStop (GME). Out of those four companies, Ford stock is perhaps the most attractive with a Composite Rating of 93 and EPS Rating of 75 and an RS Rating of 86. Ford stock is rated second in the Auto Manufacturers Group behind Tesla (TSLA). From a technical perspective, Ford stock is above the 21-day, 50-day and 200-day moving averages and the averages are all sloping upward. [Article continues...]( [Put the Cap on Gas Prices: 6 Ways to Save at the Pump]( When the price of oil spiked during the February deep freeze, I started using a gas price app and was amazed to find that the cost of fuel in my area varied by 70 cents a gallon. By purchasing the cheapest gas, I could save $8.40 each fill-up and as much as $220 a year. As we come out of the pandemic and pump prices climb, it's once again time to be smart about your gas purchases. With some simple planning, a household with two cars could easily save the cost of a car payment each year. And businesses with a fleet of vehicles have much more to save. Combine the following strategies to maximize your savings and perhaps find other rewards, too. (Of course, buying gas at a bargain is only half the opportunity; you can drive in a way that stretches your gas even further.) [Click to continue reading this article...]( [3 Signs You're Just Not Ready to Collect Social Security]( The decision to sign up for Social Security is a big one. You're allowed to start collecting benefits once you turn 62, and while you technically don't have to file by age 70, that's generally considered the latest age to do so. If you're thinking of signing up for benefits, it's crucial to make sure you're really ready. And if these things apply to you, then unfortunately, you aren't. [More here...]( SPONSORED CONTENT [11-Hour Options: The Ultimate Income Trading System [Free eBook]]( In this eBook, Dave shows you exactly how he, and other traders, enjoy a 94.8% win-rate over the last 727 trades by focusing on high-probability trades. You're typically only in the trade for about 11 hours. And the goal is to make 4%, 5% or 6% on each trade (average has been 5.3%). 5.3% may not seem like a lot. But when you win 94.8% of the time, it adds up quickly! 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