MARKET PLUNGE! How Low Are We Going? Strategies...

Hey Options Traders,

Wow, what an eventful day in the markets. The Fed announced a 0.25 basis point cut, yet the market tanked? Jerome Powell confirmed only two interest rate cuts next year and markets did not like that. Just a few months back we were expecting 4-6 cuts in 2025. Here’s how I’m playing the news.

What we are covering:

1. $QQQ and $VIX - Is the plunge over?

2. $TSLA - Briefly down 10% today, where it’s headed next?

$QQQ and $VIX - Is the plunge over?

Today the triple Q’s plunged 4.5% down to the trend line support of $516. I took this opportunity to add another LEAPS option to my portfolio. Currently have +5 LEAPS call options on $QQQ.

Yes, the market did not act in an excited manner to the Fed announcement, but VIX was trading near all time lows, so it was not out of the ordinary that we had a spike in fear.

Fundamentally nothing has changed. We are still in a lowering interest rate environment. Companies are outperforming. Trump being president is good for businesses and the markets.

I believe we could see a VIX spike to 30 tomorrow morning at the open and then we resume higher.

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$TSLA - down 10% in a day! Where is it headed next?

Surprisingly enough Tesla held stronger than expected. We could have easily plunged down to November levels if there was a fundamental shift in the economy. This tells me…

we are most likely headed higher!

Perfect opportunity to sell cash secured puts at the open tomorrow. Look at the $415 level for support.

My New Tesla Wheel Strategy & Position

Gotta risk it, to make the biscuit!

-Ryan