There is no sugar-coating it, the market, led by the Nasdaq which has fallen for six straight trading sessions, had a bad week. By week’s end, the S&P 500 fell 4%, the Dow lost 1%, and the Nasdaq dropped 6.2%.

Risk off was the theme last week as traders are once again worried about sticky inflation, and now there is growing fear of further war in the Middle East. And while those are two big worries, big picture it wasn’t a terrible week for the indexes as the S&P 500 and Nasdaq both fell 1.6%, while the Dow lost 2.36%

For the past six to nine months the consensus among traders had been that the Federal Reserve would be cutting interest rates this year, and some thought it would be aggressive cutting. However, that narrative may have changed on Thursday as two Fed members noted that the central bank might not cut at all in 2024. This sent shockwaves through the stock market Thursday and Friday.

As I noted last week, this is a shortened version of the normal Monday Weekly Review as the Mintz family just got back home late last night from a short Spring Break trip. I am back at the trading desk today, and all Cabot Options-related services will run as normal this week.

It was a strong week for the market following the Federal Reserve meeting. And while some talking heads may say the reason the indexes rallied was the Fed’s moves, or lack thereof, more likely the reason is we are in a bull market.

It was another slippery week for the market as the sector rotation and trader narratives seemed to swing violently day-to-day. By week’s end the S&P 500 and Dow were marginally lower, while the Nasdaq fell 0.76%.

Good gracious, last week was volatile for the market as the indexes moved violently day-to-day. Yet, by the close of trading on Friday the S&P 500 and Dow were only down marginally on the week, while the Nasdaq had declined by 1.5%.

Despite some heavy selling pressures early in the week, the market rallied to close the week following Nvidia’s (NVDA) blowout earnings report that highlighted the growth potential of AI. By week’s end the S&P 500 had gained 1.2%, while the Dow rose marginally and the Nasdaq fell slightly.

As traders grappled with the moves in the bond market (expectations of rate cuts coming soon have faded), the market moved violently day-to-day, though big picture the indexes were mixed. By week’s end the S&P 500 had fallen 0.35%, the Dow was mostly unchanged, and the Nasdaq had lost 1%.

Despite some under-the-surface concerns, it was another strong week for the market as the S&P 500 gained 1.5%, the Dow was mostly unchanged and the Nasdaq added 1%.

Despite some worries early in the week, the bulls once again bought the dip, and pushed the indexes near all-time highs. For the week, the S&P 500 and Dow gained approximately 1.35%, and the Nasdaq rallied 1.7%.

Ahead of a potential monster week for the market, with plenty of volatility, last week was fairly quiet for the indexes. The S&P 500 gained 0.7%, and the Dow and Nasdaq were mostly unchanged.

Options trading has its own vernacular. To know how to do it, you need to know what every options term means. Here are some of the basics.

Want to know how the big institutional investors use options? Here is an example of how one trader spent $132 million on three technology stocks.

A subscriber recently asked me if I keep a journal of my trades. Many traders keep journals so they can look back at their trades and evaluate what they did right and what they did wrong.

Using Options to Hedge a Portfolio


A few Cabot Options Trader subscribers have asked me about ways to protect gains in their portfolios, so I thought I would write to everyone with a couple of strategies using options to hedge your portfolio.

This guide will help you execute the options strategies recommended in Cabot Options Trader.

Guide to Options Trading

Worried about another market correction? This bit of options education should help you learn how to hedge your portfolio using puts.

Options education is one of my main goals for Cabot Options Trader subscribers. And here are three important lessons I’ve been telling people lately.

Options education is one of my main goals for Cabot Options Trader subscribers. And here are three important lessons I’ve been telling people lately.

In the wake of the second Boeing 737 plane crash Boeing stock, symbol BA, has become extremely volatile and of interest to Cabot Options Traders.

All options are a wasting asset whose time value erodes to zero by expiration. This erosion is known as time decay.

A protective put is used when a trader is bullish on a stock he is buying or already owns, but is wary of the stock’s short-term future. It is used as a means to protect unrealized gains, while giving the trader continued upside potential.

Combining Cabot Options Trader and Cabot Growth Investor

In mid-February I sent an Options Education article highlighting a trade Cabot Options Trader Pro subscribers had just executed. To refresh, this was in the midst of a steep market decline and the VIX was exploding higher.

Below is an article I wrote a couple years ago in response to a subscribers’ question regarding options and option volatility around earnings.

I’ve received a ton of great emails from subscribers over the last couple of days about huge profits this year. I’m thrilled that you are making lots of money. That said, while it’s great that we are making good money, we must remember the risks as well.

The S&P 500 is down 0.5% this morning, though well off the overnight lows (lower by 1.25%) following news that Gary Cohn, President Trump’s top economic advisor, is leaving his position. As the market has heated up, I’ve received many great questions from subscribers.