December 2018 Commentary Posted at: December 14th - 3:02 PM Monthly Option Alert Alert Message Welcome everyone. Markets have been just crushed since Oct 3rd, all rallies are being sold. Seems like almost all major averages except for the DOW have “Death Cross” formations (50 day ema crossing under the 200 day ema) not good for call buyers. As of this writing the S&P 500 is setting up to close at the lowest level since May. Next week we have the Fed deciding interest rates in a two day meeting Tuesday and Wednesday, they are expected to raise by .25%. After the Fed meeting they will lay out future rate increase intentions. I believe the market will mount a quick rally that will be sold off hard. This beat down we are seeing today will go around the world and be back on our doorstep Monday. So to sum it up, options are expensive right now due to the volatility. I will put out plays at 3:30pm et today, start with half size positions that we can add to if necessary and be ready to switch to the other side if we get that signal. I will update this commentary before the market opens Monday. Limits & Stops SELF DIRECTED TRADERS: Monthly Option alerts should be traded with NO stop loss targeting 30% - 50% returns. Additional Trades View all recent trades. Monthly Options Instructions All options are buy to open, sell to close. Options follow the following format: Stock + Expiration Date + Option Type + Strike Price. Example QQQ201220C120 = QQQ 2020/12/20 Call $120. Read Monthly Options Guidelines for more information about how to trade our Weekly Options strategy.