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Upstart (UPST) reported Q3 results yesterday, and the stock is taking it on the chin this morning despite strong results.

All eyes are on the Fed. Sure, there’s inflation and Omicron and some other stuff. But Wall Street types mostly care about the Fed.

On to the market, we’re in a good old-fashioned correction for growth stocks. The action in a lot of individual names is as ugly as we’ve seen in a while, with some stocks looking just downright awful. This is a broad move – very few stocks are being left out of it. I suspect the selling has been exacerbated by this being a holiday week.

The market is getting walloped today after a huge inflation report led to a horrible bond auction that kicked interest rates higher. As of 2 pm, the Dow is off 163 points, but the Nasdaq is down 200 points and many hot growth titles are pulling in hard.

The major indexes are mixed today, but that’s mostly as investors hide in defensive names while again pouring out of growth stocks. As of 11:45 am EST, the Dow is up 145 points, but the Nasdaq is down another 218 points (1.4%).

The market is higher so far today, though volumes and volatility are already fading ahead of the long holiday weekend. As of 11 am EST, the Dow is up 177 points and the Nasdaq is up 98 points.

Bitcoin and crypto- related securities have been the talk of the trading world for weeks as the value of these new digital currencies have skyrocketed. And with the value of the coins’ rise, there’s been massive moves in the share prices of companies that are involved.

The market’s snapback from its mid-December low has been solid—the S&P 500 being at new highs is never a bad thing, and by our measures, the market’s overall intermediate-term trend has turned back up.

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

I’m often asked about the difference between Cabot Options Trader and Cabot Options Trader Pro, so here I explain the difference so that you can choose the right service for your needs.

The big-cap indexes continue to hang in there, with this morning’s bounce bringing both the S&P and Nasdaq up to around breakeven on the week. That said, there’s little doubt the damage to the broader market has been severe—indexes like the S&P 600, S&P 400 and NYSE Composite are not just down on the week but sitting below their 50-day lines. All in all, then, the intermediate-term trend is down.

Buy-Writes vs. Naked Puts

The market had another constructive week, which by our thinking makes it three in a row. Coming into today, most indexes were up in the 1.5% to 2% range, which keeps the nascent intermediate-term green light (received last week) intact.

Last week, while the major indexes had another solid week, we did see some wobbles among individual stocks—nothing abnormal, but a possible sign that sellers were finally showing up after a heady run.

Onto the market, it’s been another relatively tame week for the major indexes—the Nasdaq is leading the way (though only up 1% or so) while the S&P 500 is near flats-ville. However, there’s little question that the near-term correction/consolidation has continued under the surface.

As the market was falling apart and the VIX was exploding to multi-year highs, Cabot Options Trader Pro subscribers executed a short volatility trade, selling an Iron Condor. Here are the details of the trade and some of my commentary.

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.

For growth stocks and indexes, there’s clearly been a lot of damage this week. Funds like ARK Innovation (ARKK) have hit new six-month lows, while broader indexes like the Next Generation Nasdaq (QQQJ) and Russell 2000 Growth (IWM) have slid all the way to their 50-day lines and given up big chunks of their October rallies.

The major indexes are doing well today thanks to some mega-cap names, but under the surface, we’re seeing a ton of damage among leading growth stocks. As of 11:15 am ET, the Dow is up 240 points and the Nasdaq is up 91 points, but most growth-oriented funds are down and many names are off big.

After going through our portfolio this past weekend, I’ve decided to make a couple of quick changes. Part of my thinking with these two sells is that we have a new crop of ideas coming in next week’s issue and we can carve out some spots (and free up capital) for fresh ideas, while taking a little risk off the table while the market is strong.