August 19: Options Expiration for individual stocks

By: Jeffrey Cohen, Investment Advisor Representative
US Advanced Computing Infrastructure, Inc.

Big day today. Lots of movement if you know where to look (in pre-market).  Generational wealth being created and lost in pre-market and expected throughout the day today.

In today's video we focus on options expiration and a few stocks that are really moving in pre-market.

We don't see the kind of news in the mainstream social media, or news media (online) that gives us a reason to trade either up or down. The narrative feels managed and politely positive. That is ok with us, we like polite society...however, this is not how you manage money or your investments.

Stocks are showing red pre-market. Down about one percent. We have not seen this in a while and it surprises us. The VIX is trading where it landed two days ago, up about 15% to 20% from the low of 20.00 it reached recently. There is not much fear in this market despite almost retracing half the losses of the recent bear market.

The US Dollar is super strong. Interest rates are rising and falling multiple times in a week as the market tries to decide whether we are in a recovery, a recession, a tightening, a pivot, and whether inflation rising in China and Japan just means that this is a global contagion of 'free money' and we all have to work together (sink or swim) to recover global tight (and valuable) fiat currencies. We don't know whether firms are hiring, firing or just standing by. Production and orders are down, inventories are being used up...but not sure whether this is just a short-term malaise as the Summer wears on. Cannot tell long-term economic direction today.

So, Good luck out there. There are individual risky (high BETA) stocks that are down 5% to 15% pre-market at the time we made our video and those options values are moving dramatically. Options premium is being burned and earned even before the market is open. We noticed so many stocks that are trading actively this morning.
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