Power Plays Options Weekly Roundup
January 10, 2025

By Scott Redler

The market is not responding well to the hot jobs report, which is no surprise given that computers are programmed to sell based on how numbers hit.

Traders are still starting to price in a more hawkish environment in 2025, which makes it a tougher time to have risk on.

Technicians have been concerned about a potential head & shoulders pattern triggering in the SPY.

And with rates on the rise, there is risk of a move down to SPY 565. That would be about 7% off the highs.

Not a disaster, but plenty of stocks would be hit hard along the way, particularly growth names. That's why I've been taking risk down.

Based on the reaction to the jobs report, it looks like we're not escaping this ugly range trade anytime soon, meaning it's harder to find anything that can actually trend.

Disaster is not guaranteed—I'm just playing the probabilities as I see them.

On the positive side, if we do get a drop to the SPY 565 area, that could be an opportunity to scoop up call options in any number of growth names like Nvidia (NVDA) and Amazon (AMZN).

Now let's go over our names:

AVGO January 24 $250 Calls: Unfortunately, semiconductors are getting hit, which has sent these calls down pretty hard. I may have to just salvage them at some point.

CEH January 17 $35 Calls: This January effect name did not work at all, so unless something extreme happens, these options will expire worthless next week.

VAL February 21 $45 Calls: Energy has held up well in 2025, so these calls are doing great so far. We'll hang on to the remainder for now.

Have a good weekend, and be careful out there!

—Scott ​

Scott Redler Positions Disclosure as of 2025-01-10 at 10.12.11 AM

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