© Copyright 2025 eOption, a division of Regal Securities, Inc., Member
FINRA/
SIPC |
Important Disclosures
950 Milwaukee Ave., Ste. 102 | Glenview, IL 60025
The information on this web site is for discussion and information purposes only. All accounts accepted at the discretion of eOption which accepts customer orders only on an unsolicited basis, and does not make any recommendations regarding any security or securities product with the possible exception of orders executed by our full service bond desk. Nothing contained herein should be considered as an offer to buy or sell any security or securities product. Online trading has inherent risks due to loss of online services or delays from system performance, risk parameters, market conditions, and erroneous or unavailable market data.
FINRA BrokerCheck reports for Regal Securities and its investment professionals are available at www.finra.org/brokercheck.
Options Disclosure: Options involve risk and are not suitable for all investors. Prior to trading options, you must be approved for options trading and read the Characteristics and Risks of Standardized Options. A copy may also be requested via email at support@eoption.com or via mail to eOption, 950 Milwaukee Ave., Ste. 102, Glenview, IL 60025. Online trading has inherent risks due to loss of online services or delays from system performance, risk parameters, market conditions, and erroneous or unavailable market data.
eOption Commissions: Broker-assisted orders are an additional $15. Option strategies involve multiple purchases; therefore your transaction costs may be significant for option strategy trades. A commission rate of $2.00 for equities and $3.99 + $.10/contract for options, per execution, applies to orders entered and filled by eOption's Auto Trade Desk and does not apply to customers who enter their trades directly into the eOption platform and are not utilizing the Auto Trade desk.
Broker Comparison: The competitor rates from published websites were verified on 05/25/2023 and are believed to be accurate, but not guaranteed. Commissions are subject to change without notice. At some firms, commissions may not reflect broker-assisted fees, orders over 1,000 shares, penny stock trades, OTCBB, pink sheet stocks or foreign stock orders. Firms may offer reduced commissions if additional criteria are met.
Blog & Commentary: eOption is neither affiliated with, sponsored by, nor endorses commentary and the opinions expressed are solely their own. Content is provided for educational and informational purposes only and eOption cannot attest to its accuracy or completeness. No information provided has been endorsed by eOption.com and does not constitute a recommendation by eOption to buy or sell a particular investment. You are solely responsible for your own investment decisions, and eOption makes no investment recommendations and does not provide financial, tax or legal advice.
Tariff Deadline Looming
www.oneoption.com
If trade negotiations are not progressing the original rates will be enforced on August 1st.
PRE-OPEN MARKET COMMENTS TUESDAY – The news this week is very light. Yesterday the market gave back the gains from Thursday and that tells me that the Big Beautiful Bill was already priced into the market. The jobs report was better than feared, but it was not particularly strong. Private sector job growth is slowing.
Earnings season starts next week and analyst estimates have been greatly reduced during the last few months. Initially, profits for the S&P 500 were expected to grow over 9% and that has been halved. This is one of the largest estimate drops we’ve seen during a quarter in the last decade. Valuations are high and if earnings growth slows, the market will pullback. Be careful not to assume that a “beat” is going to move the stock higher.
Trump is sending out letters to nations to inform countries of the pending tariff increases. Japan and South Korea will pay 25% tariffs. Rumor has it that Europe will be spared and that a trade deal with India is close. We haven’t heard anything in the way of trade deals with our two largest partners (Canada and Mexico).
The tariffs are certain, but the impact is not. We don’t know how they will impact inflation or profits. If companies pass the tariffs on to consumers, prices will go up and demand could decrease. If companies absorb some of the tariffs profit margins will suffer. Companies have been front running the tariffs and the actual impact might not be felt for a few months.
I like selling out of the money put premium (naked or spreads) to distance myself from the action and to take advantage of time decay. I don’t like going out more than two weeks and I want to stay flexible. Towards the end of the month mega cap tech companies will report earnings and the Fed will signal their willingness (or reluctance) to cut rates in September. I suspect that we will see selling pressure in August, but I am not going to guess. I will wait for technical confirmation and I will be ready to short if the market breaks down. I also like day trading and if I can find a few nice trades each day, that’s all I need while I wait for this to play out.
Overseas markets were relatively flat and the futures are only up 10 points. There’s no news to drive the market so it might take a while for the market to find its footing. The ideal set up is a pullback early in the day that finds support. That allows us to identify stocks with relative strength and when the market rallies off of support we will have a small tailwind to fuel the stocks higher. Don’t look for big sustained moves. If you have nice gains, take them.
Yesterday’s range is support and resistance.
Content is provided by OneOption, LLC, which has no affiliation with Regal Securities, Inc. (“Regal”) This commentary is provided for information purposes only, and is not a recommendation, offer or solicitation by Regal to buy or sell securities or to adopt any investment strategy. Regal has not participated in the creation of the OneOption content and does not directly or indirectly endorse the content. Any reliance on this material is at the sole discretion of the reader.