Power Plays Options Weekly Roundup
December 20, 2024
By Scott Redler
This was a very tough week.
The Fed's "hawkish cut" was not well received because of the updated dot plot indicating fewer-than-expected cuts in 2024.
And as a result, SPY sliced through the key $602 level I outlined last week.
The market is back in price discovery mode, and I'm looking to be a sniper, waiting carefully for opportunities.
And I'm trading much less overall.
Month-to-date, most sectors are down, and SPY/QQQ are being held up by just a few big stocks like Tesla and Apple.
And small caps have been hit very hard.
So now I'm looking to see which sectors and names (if any) can take the leadership baton.
That will help me find our next Power Plays Options idea.
Now let's dig into our names:
CELH 1/17 $35 Call: The stock has pulled back like most momentum names, and it looks like I moved too early. Still, it has time to recover into the January 17 expiration.
DASH 12/27 $185 x $192.50 Call Spread: DASH has suffered a nasty breakdown in the wake of the Fed, so odds are this ends up in the loss column when it expires next week.
IBIT 12/27 $58 x $61 Call Spread: Thankfully, we took off half on Monday ahead of Bitcoin's breakdown. But Bitcoin is recovering today, which is good to see.
Stay safe out there.
-Scott
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