In the big picture as I said in the weekend update the market is in correction mode. That correction doesn’t mean a crash. Almost more importantly the SPY needs to mark some time, and that is going to be measured in months not weeks. So sideways to lower through the first half of 2025 is a general expectation. It’s going to be a particularly attractive period for certain types of option strategies where we get to act with the same advantages the option floor brokers use everyday.

So I’m actually looking forward to this. From about 3 weeks ago I was short IWM, MGM, SMH, and MSFT. Already booked profits on two of those (MSFT and MGM) at about 50% each due in part anyway to the floor broker strategy I spoke about. SMH is doing great and would require a monster rally to lose money on the spread we have. The IWM is about even but long dated out till March so plenty of time to use short dated options to good advantage against this position. Short term looking for a bounce in general. AMZN, JPM, GOOG look good still and should lead a short term recovery this week. 

Thanks,

Joe