BY MARK SEBASTIAN
March 24, 2025
Hey Traders,
The S&P 500 had a pretty darn constructive day on Friday.
The index had a really nice rally coming off of being down all day. I thought there was a decent chance that we might get a real rally, but turning a loser into a winner on Friday AND closing the week UP were big wins.
Friday was quadruple witching, meaning a lot of stuff came off the books. Today, with the VIX near 20, covered call funds and put write funds will be out in FORCE.
Another very important development from Friday – VIX is in contango.
This was one of the BIG things I was looking for to go long … and why I might be bullish this week.
One other major thing I have been watching is movement, which is dying:
Movement is starting to roll over.
While programmatic selling is going to work to our advantage this week, what could really work to your advantage is joining Hans and Hannah on Thursday to learn about how he’s approaching this market. You do not want to miss it – click here and save your seat.
I am going to be looking at a bull super overnight for Friday.
Let’s Recap Friday’s Trade
Not my best trade … but I really thought we might get a head of steam into the close.
And we did – I was just a little mistimed on my trade:
This is where timing is key. If I waited 30 minutes, the S&P 500 was at almost the same level and I would have been able to set up a trade much closer to ATM. Then, we would have been in a home run.
…Today’s Outlook
S&P 500 futures are up overnight. Look for an open near 5700 and then we will see.
If we are still trading around 5700 at the open, I am going to want to take a quick exit on my overnight trade and then reposition – probably bullish. Although, we want to let things play out until after 1 PM ET.
But if we break out higher … Monday might be the day.
Call Ted if you aren’t currently a member – 888 872 3301.
Your Only Option,
Mark Sebastian
Mark Sebastian
Founder & CEO, Option Pit
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