Next Friday July 17, 2020 is options expiration for the month of July. If you have followed me for any length of time you know I always warn that the week leading into options expiration is a week that is filled with lots of institutional game playing. Often, next week you will hear a lot of rumors and chatter of takeovers and possible buyouts. These rumors will usually be untrue. There will also be lots of ridiculous upgrades, downgrades and price target adjustments by analysts. Usually, stocks and markets that are sharply higher into options expiration week will be susceptible to pullbacks or sharp declines. On the other hand, stocks that have been sold off sharply and in down-trends can often get bounces during the options expiration trading week. Next week will be a time for institutional game playing, especially if the overall trading volume is light.
Some stocks that have been surging recently include Apple (AAPL), Alphabet (GOOG), Amazon (AMZN), Facebook (FB), Shopify (SHOP), Tesla (TSLA) and many other tech heavyweights. All of these stocks are vulnerable to pullbacks next week. This is what often happens during the week of options expiration. Traders should also note that the NASDAQ Composite has been making new all time highs without the other major stock indexes. This makes the tech sector somewhat vulnerable next week with options expiration.
Bullseye Options has earned of over 900% in profits already this year. But don’t take our word for it, look at every single trade yourself right here.