All Star Options Articles

Today's trade is a similar trade to the one I did in Kingsoft Computing last week. It's a bet on a previous highfligher, who had it's legs kicked out from under it during the recent market turmoil, that appears to be setting up to resume its former prominence.

Well, here we are. Both $SPY and $QQQ are stuck in a weird place -- above their 50-day moving averages, and below their 200-day moving averages.

What now?

My gut tells me some sloppy digestion will be the rule of the day for the next several weeks. Of course, I reserve the right to change my mind pending whatever Amazon says tonight when they announce earnings.

We did a quick Options Jam Session today due to technical difficulties rendering a late start. But this means I get to the point quickly about what I'm seeing and what I'm trading.

Check it out here:

Sean McLaughlin | Chief Options Strategist, All Star Charts

If the market is serious about making a V-Bottom happen, I have a hard time believing it'll happen without the semiconductors.

And right now, in my opinion, Broadcom has the best-looking chart. So that's the horse I'm going to ride back to highs.

In the spring of 1998, I was six months into my first job out of college—a mutual fund and insurance salesman for MetLife. The people were kind, and my boss was supportive, but it was a terrible fit for a 22-year-old fresh out of school. Nobody wants financial advice from a kid who, not long before, was slinging pizzas and wings for barely more than minimum wage.

So when my father offered me a chance to move in with him in Tampa, Florida, and look for new opportunities, I glanced out the window at the grey Buffalo skies and didn’t hesitate. Sunshine and a fresh start sounded like the only logical move. Less than a week later, I was on the road.

The first job I landed in Tampa was with what could generously be described as a pseudo-boiler room. We weren’t cold-calling doctors and lawyers with high-pressure penny stock pitches, but we were dialing other stockbrokers and trying to convince them to pump those same junk names to their clients. One step removed from the end-sucker. I was young, naïve—or rather, stupid.

Three months in, barely making any money, it became clear the whole operation was a scam and we were being taken advantage of.

Sorry for the obnoxious title. Sometimes, these things just write themselves.

You would think that a company involved in sports betting would be doing well, considering it seems I can't escape the barrage of advertising for sports betting apps I'm seeing everywhere I turn.

Apparently, there is a company in this space that can't seem to figure it out. Or at least, that's what their stock price action is saying. 

Recently, I had the pleasure of joining Michael Martin on his Trader Mindset podcast for a deep and honest conversation about what it really takes to trade in volatile markets.

One of the biggest takeaways I shared — and something I’ve been reflecting on a lot lately — is that these days, I’m more focused on finding strategies to keep my head on straight than I am on searching for new trading strategies with some theoretical edge.

Because here’s the hard truth: without a clear, steady mindset, even the best strategy in the world will eventually fail me.

Of course, Michael and I also dug into how volatility — especially as measured by the VIX — shapes the playing field for traders, particularly those of us in the options world. We explored how elevated VIX levels impact trade selection, timing, and risk management, and why high volatility environments demand a different, more nimble approach.

One of the key themes we kept circling back to was the psychological side of trading. Because let’s face it: when the market’s flying all over the place and my P&L is jumping around just as fast, my internal state can become my biggest...

This weekend, I shared a story about a young woman who asked me how she could set herself up for future financial success. I told her that the best education comes from living life fully—scars, stories, and all. Your response to that post was overwhelming, and I’m grateful for the thoughtful feedback. Today, I want to highlight one reader’s note that struck a chord and dive deeper into what it means to embrace our “life education.”

A reader, Julius, wrote to me with this reflection:

I agree with you about life. From my experience and perspective, the greatest education doesn’t come from school, books, courses, or TED talks but from living life to the fullest…

As you stated, the best education comes from the life you have lived and the scars to show for it. Then you’re left with the story to tell about it. Years ago, I stopped thinking of those scars as mistakes, failures, or regrets. Instead, I think of them all as outcomes…

Had I kept beating myself up over all my so-called mistakes and failures,...

Today's trade is in a name that has been on my radar for a couple of weeks. I've been waiting for a trigger. And today, we're getting it.

Yesterday, I was flat on my back, getting professionally stretched, my body creaking like an old door. It’s a bi-weekly ritual I lean into hard—it keeps me flexible, and helps me heal from years of grinding through life’s chaos. The woman working me over, a 24-year-old just starting her career, hit me with a question out of nowhere: “You’ve been around—what’ve you done to set yourself up financially that I should know?”

I laughed. A real, barking laugh.

“You’re asking me? You think I’ve got my shit together?” Her question caught me off guard, like a jab to the ribs. I’m no sage. My financial path looks more like a drunken stumble than a victory lap.

All I could give her at the moment was a half-assed list of regrets. “Here’s what I didn’t do,” I said, my voice trailing off. Don’t skip saving early, even if it’s just a few bucks a month. Don’t bet big on “sure thing” investments that crash and burn—I’ve got scars from those. Don’t let pride stop you from asking for help when you’re drowning...

It wasn’t the TED Talk she deserved. It felt like I was reading my failures out loud, each one a reminder...

During a recent Analyst meeting, it was discussed now that we're getting further confirmation that the lows may be in for the broader stock market, it's time to start shifting our attention to stocks that displayed strong relative strength in recent months.

The chart of Groupon $GRPN (remember them?) is exhibit A for relative strength as it's on the verge of printing new multi-year highs. And the team feels if this one goes, the stock could double. If it does, some strategically selected long calls could pay handsomely.

If you missed it live, I reviewed the broad market setup and what the recent "follow-through day" is signaling, if anything.

There is now an increasing chance that the recent lows are going to hold for a meaningful amount of time. This does not mean that volatility is going to rapidly cool any time soon -- so we'll have to continue being tactical.

Additionally, we review three profitable exits and one trade that is really starting to shape up for us at the perfect time.

Check it out here:

Sean McLaughlin | Chief Options Strategist, All Star Charts

Yesterday’s strong gains across the S&P 500, Nasdaq, and Dow were hard to ignore. After nearly two weeks of chop and fear following the "Trump Pump" regarding the 90-day pause of tariffs, we finally saw a full day, broad-based rally with real thrust behind it.

While I would’ve preferred to see overwhelming volume — something that just blows the 50-day average out of the water — we did get a clear uptick in volume versus the previous day. And according to the framework laid out by William O’Neil and Investor’s Business Daily, that technically qualifies as a follow-through day.

So, what exactly is a follow-through day, and why does it matter?

William O’Neil, founder of IBD and author of the classic trading book How to Make Money in Stocks, coined the term to help identify potential market bottoms. The idea is that true, lasting bottoms are rarely identified by a single day’s bounce. Instead, the market needs a few days to digest the low — then show strength, in the form of a powerful rally on increased volume.

Here’s how IBD typically defines a follow-through day:

“A follow-through day is a...