Power Plays Options Weekly Roundup
December 6, 2024
By Scott Redler
Welcome to the very first Power Plays Options Weekly Roundup.
Please note: if you subscribe to the standard stock-focused version of Power Plays, there will be some content overlap because my weekly roundup is to give you a broad overview of market conditions.
The big story this week was Bitcoin finally getting over $100,000 - a scenario I've been talking about for months.
We kicked off Power Plays options with an iShares Bitcoin Trust ETF (IBIT) call spread (more on this below).
However, that may have marked a short-term top for crypto, and Bitcoin may need a little time to rebuild for another move higher.
I'm still fine with this IBIT position because I do think Bitcoin will recover into year-end.
Overall, this market has been great for active traders because we've been getting regular rotation between sectors and names. One week, we'll see mid-cap momentum names flying, and the next, the Mag7 will be back in charge.
This is healthy because it means strong buying demand for equities on the whole.
We have a pretty busy calendar next week between the CPI, PPI, ECB Rate Decision, plus earnings from Oracle (ORCL), MongoDB (MDB), Adobe (ADBE), Broadcom (AVGO), and Costco (COST).
The market reacted well to today's jobs report, so our next step is to see if that takes anything away from a potential post-CPI rally.
As always, we'll keep a close eye out for new setups.
So watch your inbox for new Power Plays Options ideas!
Now let's dig into our sole position:
IBIT December 27 $58 X $61 Call Spread: with its 12/27 expiration, this position has time to work higher on a possible Bitcoin recovery. I still like it.
-Scott
About Power Plays Options
Thank you for joining Scott's first dedicated options service as one of our charter members.
Since PPO is an all-new service, we may adjust some aspects of the format and content in the coming weeks. But, the focus will remain on providing high quality ideas for you to consider.
Depending upon the name, Scott may not introduce a specific exit plan at the time of idea initiation. This is because options prices can move so far so fast, and Scott prioritizes flexibility.
However, if Power Plays removes an options idea (whether it's up or down), Scott will notify you with an alert.