3 Top Option Trades This Week

Summary

Key Points

• The speaker anticipates a market shakeout next week due to the FOMC meeting, leading to increased volatility and a temporary market decline. 0:57
• He advises against getting shaken out by media narratives and market manipulators, suggesting that a sell-off into early October will create a perfect entry for an end-of-year rally. 2:38
• Current market conditions are "sketchy" due to rising bond rates (5%) and increasing oil prices, which could lead to an inflation shock and divert capital from stocks to bonds. 4:08
• McDonald's (MCD) is presented as the speaker's largest career leap option trade, identified as a prime opportunity when its weekly Relative Strength Index (RSI) touches 30. 6:47
• He promotes his new book, "Paid to Wait," which teaches his trading system, including the RSI "rubber band" concept and bottom-buying strategies. 7:15
• The "secret sauce" for buying bottoms involves identifying divergence, where the market makes new lows but the RSI indicator does not, signaling a weakening downtrend. 9:54
• MCD currently exhibits this divergence, with the market moving lower while the RSI holds, making it an ideal long-term entry point for leap options. 14:03
• Despite high market risk and expected choppiness, several S&P 500 moving average indicators suggest market exhaustion and a potential short-term relief rally, indicating limited further downside. 14:15
• Other potential trades include Amazon (AMZN) as a decent entry for put sellers or stock buyers, and Take-Two Interactive Software (TTWO) showing a hammer candle and bottoming range. 15:36
• The speaker expresses skepticism about Ethereum's recent rally, hoping for a consolidation or pullback to accumulate a larger position before a potential future surge. 16:12