6/8/25 Best Idea For The Week Ahead

As we look at the weekly chart of the market below, the SPY is breaking up from a small sideways consolidation the last 3 weeks and now nothing is stopping it from testing those 613.23 highs. Use that 8 week around 580 as your level to add on dips, but right now this market is looking very strong. Trump said today we are pretty far along in our framework with China on a deal, the bulls will love that one next week. For now though, the pump is on in the low volume summer months when lots of the big money is on the sideline. This is a mess for all those who decided to wait as they will be forced to chase when they get back from summer vacation. Don’t look now but we are even higher than we were when 2025 opened, and considering all that has transpired since, bears have to be deflated right now.

This weeks best idea is the hottest name in my database over the last week, I have some short puts on it myself, but there is some heavily bullish action going on and we are going to look at 3 different options trades to play it depending on what you’re trying to accomplish. Alot of you are new and always ask me why I mention the combo risk reversals so often.My stance is simple, calls are risky, the only way to play them is using short puts to offset the costs of buying them. Every stock is a buy at some level and your short puts should always be at those key spots. You can tilt everything into your favor as much as you’d like with how many short puts you end up selling to drive more of a credit to yourself. You don’t have to just buy calls and lose money if you’re wrong, when a trade is placed for a credit you can be wrong on the calls and still profit. That is a very powerful thing. You are tilting probabilities in your favor now.