(Please enjoy this updated version of my weekly commentary published December 15^th, 2021 from the POWR Options newsletter).

The NASDAQ 100 continues to be the big out-performer over the past 6 months, up nearly 25% in that time frame. The S&P 500 has gained a very respectable 19% in the past half year while the Russell 2000 is slightly negative over the same period. How long this massive out-performance can last is anyone’s guess.

Implied Volatility (IV) headed sharply lower following the Fed meeting. The VIX now stands at just under 20 and is back within the regime of volatility bounded by 16 to the downside and 22 to the upside. I expect a slow creep lower into year-end, barring any major surprises.

The POWR Options Portfolio realized two more winners-one bullish and one bearish. One rallied sharply and we closed the call position for a solid gain. The other was a nice overnight winner on the put side. That puts our closed trades four for four as far as winners go. Given the roughly $500 outlay per trade, the winners range from 20% to 40%.

Look for more new trades over the coming days as the uncertainty surrounding the Fed has passed. The drop in IV makes option prices cheaper, another benefit of waiting for the Fed meeting to conclude. Definitely will be adding a bearish put or two to balance out the three long call positions currently in the portfolio

What To Do Next?

If you’re looking for the best options trades for today’s market, you should check out our latest presentation How to Trade Options with the POWR Ratings, where we show you how you can consistently find the top options trades.

If that appeals to you, and you want to learn more about this powerful new options strategy, then click below to get access to this timely investment presentation now:

How to Trade Options with the POWR Ratings

All the Best!

Tim Biggam
Editor, POWR Options Newsletter

SPY shares were trading at $468.52 per share on Thursday afternoon, down $2.08 (-0.44%). Year-to-date, SPY has gained 26.54%, versus a % rise in the benchmark S&P 500 index during the same period.

About the Author: Tim Biggam

Tim spent 13 years as Chief Options Strategist at Man Securities in Chicago, 4 years as Lead Options Strategist at ThinkorSwim and 3 years as a Market Maker for First Options in Chicago. He makes regular appearances on Bloomberg TV and is a weekly contributor to the TD Ameritrade Network "Morning Trade Live". His overriding passion is to make the complex world of options more understandable and therefore more useful to the everyday trader. Tim is the editor of the POWR Options newsletter. Learn more about Tim's background, along with links to his most recent articles. More...

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