While we had a nice rebound today from Friday’s selloff, it is important to know we are not “out of the woods" yet Dorothy. Lions and tigers and bears oh my.
While the SPX closed above a key support/resistance level, it failed to break above the strong resistance of the 21 day moving average (see image)
Notice how the high of the day wick just touches the 21 day MA and jumps back like it was a hot iron. The top wick with no bottom wick is a bearish indicator as well. And this was just an inside day.
IMPLICATION: we need to see a clear breakout and close above the 21 day MA to have any conviction that the bull trend is continuing. If it fails, we can hope to find support at 6550. If that breaks down, then personally, I’ll be dumping most or all of my positions and/or buyin' putins...
All that said, the market is otherwise strong, as evidenced by the gap up at open. This may very well just be a “healthy pullback” and buying opportunity.
https://preview.redd.it/3ay7nuudyxuf1.png?width=1638&format=png&auto=webp&s=0c1dca50e80aafd7c4749ca3260cbe0039ba408b
I will have to disagree with many of the commenters. The problem isn’t that they were 0DTEs or that SPX shouldn’t be held for longer than a few minutes.
Let’s look at the trade itself.
First, you bought fairly OTM options. SPX opened on a sizable gap up, but still in previous day’s range. It then continued to push higher into a previous resistance zone. On NQ, that was around 24,900 and on ES around 6700.
So you bought around 10am when the market was pushing into this resistance zone. What was the thesis? Full retracement of the move with no pullbacks? Or just a quick scalp?
At that point, SPX pushed about 20 points over 15 minutes. It was extended from VWAP. Moving into resistance. On a gap up in the middle of the previous day range after a major news catalyst that wasn’t fully cancelled out.
So the problem wasn’t greed or 0DTE. It was just poor trade location.
We want to buy either at the bottom of the range or on a break through and hold of the top of the range. So we either buy if we see holds at the premarket lows - around 6620-6625, or we wait for acceptance above the 6665-6670 area. And even then, buying that far OTM would be less than ideal.
Those cheaper, farther OTM calls can have a spot in our playbook, but I would say that they make sense when there was a significant selling and the market is basing at the previous solid support. Then our risk/reward makes sense because if we are right and the market can push high enough on the bounce that we can get the ITM flip to get paid at about 3:1 or 5:1 rate, or even higher.
There a was a day, I think the first Wednesday of September, when ES sold off but didn’t have its typical bounce for a couple of hours, while the price was consolidating around a support level. But the sellers couldn’t push it under, while the buyers weren’t ready to step up in a big way. Then about 30 minutes till close, the sellers must’ve started to cover, and the squeeze began. Situations like that would be sensible for a far OTM calls.
If you need more help with the levels on the market, I would recommend Vince from options insider or Matt from Trade Brigade. Their daily premarket livestreams provide tons of value and are free. You can mark up key zones on your charts so that you have stronger trade locations.
Good luck! 🍀
“Donald Trump in Hell”
Donald J. Trump looked up from his handwritten Sharpie notes on index cards. He could see the crew miking his subject for the interview and putting a final dusting of makeup on his face: He was staring into the tanned and powered face of Donald J. Trump.
A voice called out from the darkness behind the glare of the studio lights. “We’re live in 30 seconds!”
Trump looked over to the subject of the interview. Trump could see that Trump had the rigid jawline of a man who knew his purpose in life. His masculine lips pulled down into a frown, his Teutonic eyes squinting, as if he were a commander surveying a battlefield the night before an engagement.
“We’re live in 5, 4, 3, 2…”
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The studio audience went wild. It was a relatively small audience, live TV audiences often were. Digital engineers were recording the audience from multiple channels and with several layers of reverb; the cheering sounded like the crowd at Yankee stadium to the audience at home.
Trump, so focused, could only nod three times by way of greeting. Trump flicked up his first index card, Sharpie lines clear and bold in the studio lights.
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Trump prodded Trump with another question: “And your sons? Loyal like dogs.”
“With the boys they always compete for attention. But I would always say it’s on the margins.”
“And Barron? Is he loyal as your older children?”
“Melania’s child? I think he’s simple, I never really talked to him. I gave him the last name, that’s enough.”
No card was necessary for the next question: “It’s tough being you?”
“You have no idea. You have no idea. It’s outrageous. You have no idea. People say I’m a bad business man because I bankrupted a casino. Come on. I was clearly laundering money for my shady real estate ventures with the Russians and other mobsters. A classic operation. A classic. A real beauty. We were selling bottles of gin out the back door as soon as they were being delivered. We were running so many insurance and double-billing scams even the mob guys were like, “Slow it down, we’re making so much money we got it coming out of our mattress!” I come in, I see a deal and I take it. People see failed businesses. I just see rotten logs. Imagine a centipede, crawling from rotting log to rotting log, a hundred feet all moving at once. So many things in motion, things in motion. So picture me as a centipede, a human centipede. I’m crawling through the debris, scavenging what I can, making empires in rotten logs, and moving on when I feel like it. And it’s just one long beautiful dance, the dance of the human centipede.”
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A bell rang lightly off stage, and a red light flashed three times.
Trump drew himself up and straightened his index cards with both hands. “Well, I can clearly say this was the best interview of my life, the most historic. A perfect interview. On behalf of the people here and the audience at home, I just want to say “Thank you,” for coming out tonight. It’s been an honor sir, and the people thank you!”
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“Good night, America. I’m Donald Trump, here with human centipede, Donald Trump, the once and future king.”
Donald Trump smiled, and waved his hand as if giving someone a salutation, but the truth was that he couldn’t see anyone past the glare of the lights from the cameras.
[https://www.cnbc.com/2025/10/13/jpmorgan-chase-to-invest-10-billion-into-key-industries-.html?\_\_source=androidappshare](https://www.cnbc.com/2025/10/13/jpmorgan-chase-to-invest-10-billion-into-key-industries-.html?__source=androidappshare)
it's not bad to have
https://www.reddit.com/r/Microvast/s/FxthHtXOmT
https://share.google/CoQiSIZdZ3YwpK73y
Here is some info to refute your claim and there's many many more out there my guy.Further more, you do realize where the source is from right? J capital is a SHORT REPORT company, meaning its in their best interest to publish investigative reports on publicly traded companies and take SHORT POSITIONS. They make money when the share price falls, so take that with a grain of salt.
Lastly, I dont pump a stock, I genuinely think its a great investment that people should like into. Maybe verify your sources next time and actually do some research.