The Options Hunter

*** Fed Watch During Trading Hours *** *** with Dale Wheatley *** *** Early Black Friday Deal It Won't Last *** *** December 18, 2024 1:30 - 4:30pm Eastern *** Unbelievable Chance to get in on This Great Deal ONLY $79 https://lnkd.in/gEEeEXcT --- What Short-Term and Options Traders Expect Ahead of the Last Fed Meet of the Year --- With market dynamics closely tied to central bank decisions, anticipating such a market move generates intense speculation and shapes trading strategies. Here’s what short-term and option traders are preparing for as the Fed deliberates. 1. Immediate Volatility and Market Reaction The December 18 Fed announcement will have traders gearing up for immediate volatility, as any rate cut decision could prompt significant market shifts. A quarter-point cut is widely anticipated and may be mostly priced in, likely generating a modest market rally that aligns with expectations. However, a surprise half-point cut could jolt the markets, signaling the Fed's elevated economic concerns, potentially spooking traders initially before leading to a mix of sell-offs and rapid, opportunistic buying. This heightened volatility presents short-term options traders with potential for quick gains as the market digests the Fed’s next move. 2. Rally in Risk Assets Lower interest rates tend to make stocks more attractive relative to bonds, pushing investors towards equities. For options traders, this could mean a rally in key sectors like technology, financials, and consumer discretionary, which are highly sensitive to rate changes and market liquidity. If the Fed announces a half-point cut, expect substantial buying in growth stocks that benefit from lower borrowing costs. In contrast, a quarter-point cut might encourage a more cautious rally, as traders position for steady but moderate gains across sectors. 3. Sector-Specific Plays Interest rate changes don’t impact all sectors equally. While lower rates often benefit tech, healthcare, and consumer discretionary sectors by making borrowing cheaper, they tend to squeeze profit margins in financials, which may underperform. Options traders will be closely watching these rotations, moving quickly into sectors like real estate investment trusts (REITs) that thrive in low-rate environments while avoiding sectors like energy and financials. 4. Reactions to Forward Guidance Traders will be as focused on the Fed’s forward guidance as on the rate decision itself. If the Fed signals openness to future rate cuts, markets could see a rally driven by the anticipation of continued liquidity support. However, if the Fed hints that this cut is a singular move or downplays economic concerns, markets may react negatively, particularly if traders hope for a longer-term easing cycle. Fed Watch During Trading Hours with Dale Wheatley December 18, 2024 1:30 - 4:30pm Eastern ONLY $79 https://lnkd.in/gEEeEXcT

WANT MORE OF THIS? https://lnkd.in/gCTx47x3 If we look at the volatility index, particularly on the call side, it hit around 25.5. Starting from a low around 2:00 p.m., it moved from 4 cents to 36 cents—a ninefold increase in value. That’s a huge return in just one day, all on volatility. Now, trading volatility is generally not something you do unless there’s a clear pattern, and here we saw exactly that. It began climbing early in the day, and the momentum carried it higher. Strong, clear movements like these are what we’re always looking for. #optionstrading #macd

Volatility upside divergence with the price being at new low & technicals higher they've been higher ever since It's just a little roller coaster ride up and down but for the most part still up on volatility. ⚡ Ready to take your trading to the next level? Join Dale Wheatley for a high-volatility, action-packed week of live trading this October! 💥 With markets heating up, this is your chance to trade alongside fellow traders, spot opportunities in real-time, and master pattern-hunting on UVXY, SPY, QQQ, and IWM. 🚀 Enjoy real-time guidance, pay for 4 days and get the 5th day FREE 🆓, plus an unbeatable pay-half-now, half-later deal! 💸 Don't miss this exclusive chance to sharpen your skills and catch those elusive trades! 🎯 Only for serious traders! 💪 https://lnkd.in/ggxPKnRZ #investingtips #tradingsecrets #wealthbuilding #FinancialFreedom #QuickReturns #StockTradingStrategies #daytrading #moneymaking #InvestmentJourney #TradingSuccess

What Short-Term and Option Traders Expect Ahead of Next Week’s Potential Rate Cut As the Federal Reserve gears up for next week's meeting, short-term traders are keenly focused on the potential implications of a quarter- or half-percentage point interest rate cut. With market dynamics closely tied to central bank decisions, anticipating such a move generates intense speculation and shapes trading strategies. Here’s what short-term and option traders are preparing for as the Fed deliberates. 1. Immediate Volatility and Market Reaction Short-term traders thrive on volatility, and a rate cut, especially one that deviates from expectations, could trigger significant market swings. A quarter-point cut is more likely priced in, with many market participants expecting it. If the Fed goes this route, the market could see a brief rally, but the reaction may be tempered by the fact that it aligns with general forecasts. On the other hand, a half-point cut would likely shock the market, creating heightened volatility. Such an aggressive move could signal that the Fed is more concerned about the economy than previously thought, which may initially spook traders. The uncertainty surrounding this decision could lead to quick sell-offs followed by opportunistic buying. 2. Rally in Risk Assets Lower interest rates tend to stimulate borrowing and investment, which often boosts riskier assets..... READ MORE and find out how you can join us on Fed Watch on September 18, 2024 https://lnkd.in/gwEMw9rg

A rate cut at the Federal Reserve's upcoming September meeting appears increasingly likely as the job market softens and inflation returns toward the Fed's 2% target. The unemployment rate has climbed to 4.3%, up from a historic low of 3.5% just a year ago, heightening concerns about a potential recession. In response, economists are now forecasting that the Fed might reduce interest rates at all three of its remaining meetings this year, with cuts ranging from a quarter to half a percentage point.   A rate cut could have a significant impact on the stock market. Lower interest rates typically make borrowing cheaper, which can stimulate economic activity and boost corporate profits. This, in turn, often leads to higher stock prices as investors anticipate stronger earnings and seek higher returns in equities over lower-yielding bonds. However, the potential for rate cuts also signals concerns about economic weakness, which could create volatility as the market reacts to both the positive and negative implications of such a move.   **** Join Dale For This Pivotal Fed Watch Day **** September 18, 2024  During Trading Hours  1:30 - 4:00 pm Eastern Over the past two years, Federal Reserve announcements have been catalysts for sharp market moves, significantly influencing investor sentiment and market dynamics. Join Dale and a group of motivated traders. We'll look for opportunities to leverage the Fed comments.   While there's no guarantee we'll see the setups that we know yield the best returns, this is an opportunity to join the master divergent trader, Dale Wheatley for what may be a pivotal day. Only $97 Fed Watch During Trading Hours  with Dale Wheatley  September 18, 2024 1:30 - 4:00pm Eastern Reserve Your Seat at https://lnkd.in/gMCu_nci

If the Shoe Fits NKE Classic Pattern Aug 15, 2024   The Markets have settled down for now but even on quiet days there's huge gains to be made. UVXY settled down to a recent low and the major market ETFS were modestly higher with no discernable patterns. A look through the Dow 30 stocks on lower time frames revealed a similar outcome, however in the daily chart one Dow 30 stock stood out with a classic pattern, NKE.   The  Chart below clearly shows a classic V-shaped double bottom and MACD divergence up. It's on a daily chart so options will take a few days to pan out, unlike a 10-minute pattern where it's done and dusted in a couple of hours or so.   August 6th, the next trading day the NKE 78 calls expiring August 16, 2024 were available for under 10c, this allows 9 trading days. Clearly you could have looked at an option expiring 4 days later on August 9, and made some modest gains, but for the pattern to fully unwind more time is needed.   Think of it like this, if this were a 10-minute time frame divergence on SPY on August 6 and you bought OTM options expiring in 40 minutes, the pattern would need to unwind rapidly.   The chart below shows how this trade panned out. 10c to $1.40 in 5 days. Be aware of the volume when trading weekly options on stocks like this while they are still out of the money, lower volume will mean wider spreads on entry. Exiting once the move occurred was much easier.   LEARN HOW TO FIND GEMS join us for 5-days https://lnkd.in/gQrPaYzR

Volatility is Back and so is LIVE Trading Hours with Dale September 9 - 13, 2024 Limited Seats Available! We're thrilled to announce that we have a limited number of seats available for this amazing 5-day experience! This is a unique opportunity to immerse yourself in a dynamic trading environment and learn directly from an expert. Our previous 5-day events sold out quickly, and seats for this upcoming session are just as limited. Don't miss your chance to be part of this exceptional experience—secure your spot before they're all gone! ***** Why This Event is Special ***** In 2023, our Live Trading Hours on Zoom were limited to just two consecutive days. However, after receiving overwhelming feedback from our clients we expanded the access to a full 5-day session in 2024! This extended time frame will give us ample opportunity to dive deep into MACD divergence setups and other critical trading strategies. ***** Exclusive Late Summer Event Perks ***** To make this event even more accessible and valuable for you, we're offering two exclusive perks: - Pay for 4 Days, Get the 5th Day Free! Experience the full week for the price of four days, giving you a 20% savings right off the bat. - Flexible Payment Options We understand the importance of financial flexibility. That's why we’ve made it possible to split the payment into two equal installments over two months, making it easier for you to join this transformative event. ***** Why Act Now? ***** The trading landscape is evolving rapidly this late summer, and so are the opportunities. QQQ, IWM and SPY options contracts are now available for expiration every day of the week. This increase in daily expirations has been driven by high trade volumes and growing demand, offering traders more chances to capitalize on market movements, and giving you the chance to explore out-of-the-money options with minimal time premiums every single day. It’s a true game-changer for refining and enhancing your options trading strategy! Join us this September to gain insights, expand your trading knowledge, and seize the opportunity to improve your strategies in a live, interactive setting. With limited seats and exceptional value, this event is not one to miss. Secure Your Spot Today and be part of an exclusive group of traders who are committed to mastering the market alongside Dale Wheatley. See you there! ***** When Where and How ***** Full Week Special September 9 - 13, 2024 Dale's private Zoom room, open to a limited number of serious options traders ready to commit ***** Limited Seats ***** Yes I want access to the Live Week with Dale That's 5 days for the price of 4 RESERVE MY PLACE - 2 monthly payments of $499 https://lnkd.in/g9AGfhwU

#optionstrading #MACD #optionsstrategies

Volatility diverged up Tuesday, QQQ puts were under 10c Tuesday July 23, 2024. UVXY chart 15-minute had a double bottom and MACD divergence to the upside. Signaling volatility was going to go up, and when that happens, the market goes down. The QQQ 465 puts expiring July 24 were around 1 or 2 cents yesterday when the divergence occurred. You could have also gotten in this morning for under 10c. Prices rose in under 3 hours to 80c, by the end of the day $2. This is just one example of the incredible opportunities that can arise. By joining us on Fed Day, you'll be equipped with the knowledge and insights needed to spot these patterns and make informed trading decisions. Don't miss out on the chance to achieve similar impressive gains.   Act now and be prepared for the next Fed Day! Sign up today and take the first step toward transforming your trading strategy. Fed Watch During Trading Hours  with Dale Wheatley  July 31, 2024 1:30 - 4:00pm Eastern LEARN MORE https://lnkd.in/gvVfDZyx

Over the past two years, Federal Reserve announcements have been catalysts for sharp market moves, significantly influencing investor sentiment and market dynamics. March 2023: Interest Rate Hike In March 2023, the Federal Reserve raised interest rates by 0.25%, marking a continuation of its tightening cycle aimed at curbing inflation. The announcement came against the backdrop of persistent inflationary pressures and a robust labor market. The immediate market reaction was pronounced: the S&P 500 dropped by 1.5% on the day of the announcement as investors recalibrated their expectations for corporate earnings and economic growth. September 2023: Pause in Rate Hikes Another notable instance occurred in September 2023, when the Federal Reserve decided to pause its rate hikes despite earlier indications of a more aggressive stance. This surprise move was justified by emerging signs of economic slowdown and softer inflation data. Markets responded with a strong rally; the S&P 500 surged by 2.7%, marking one of its best single-day performances of the year. January 2024: Quantitative Easing Resumption In January 2024, the Federal Reserve announced the resumption of quantitative easing (QE) measures, committing to purchasing $500 billion in government securities over the next six months. This unexpected move was aimed at providing additional liquidity to the financial system and supporting economic growth. The market reaction was immediate. The S&P 500 jumped by 3.5% on the day of the announcement, while the Dow Jones Industrial Average and NASDAQ Composite rose by 3.2% and 4.1%, respectively.   May 2024: Hawkish Stance Despite Slowing Growth In May 2024, the Federal Reserve's decision to maintain a hawkish stance despite evidence of slowing economic growth led to significant market turbulence. The Fed signaled its intention to continue with rate hikes to combat still-elevated inflation, surprising many who had expected a more dovish approach. The S&P 500 dropped by 2.8% following the announcement. Join Dale and a group of motivated traders on Fed Watch July 31 and we'll look for opportunities to leverage the Fed comments   While there's no guarantee we'll see the setups that we know yield the best returns, this is an opportunity to join the master divergent trader, Dale Wheatley for what may be a pivotal day. LEARN MORE at https://lnkd.in/gvVfDZyx #federalreserve #optionstrading #optionstradingstrategy