Market analysis and swing trading ideas 4 May 2023

Looking for the best opportunities on the markets?

Look no further! In this daily market analysis for May 4, 2023, Jukka from Option Investors Club breaks down the trends and trading strategies for the US markets and sectors.

From the S&P 500 to Bitcoin, Jukka offers his expert analysis and insights on which sectors are showing potential for bullish runs, which ones may be ripe for shorting, and what to keep an eye on in the coming days.

Key content

• 0:00 - Are we seeing a trend reversal for S&P 500? Jukka shares his thoughts.

• 1:25 - Jukka's short position on IWM and how it fared after the interest rate decision.

• 2:05 - bullish outlook on Bitcoin, but with a caveat.

• 3:35 - The potential for a nice short on the XLB sector.

• 4:28 - Industrials sector and its choppy performance.

• 5:12 - What's in store for XLY in the coming days?

• 6:29 - A closer look at biotechnology and why it's worth watching.

• 7:11 - Jukka's take on the retail sector and whether it's still a good short opportunity.

• 8:42 - The time to short the clean energy sector... is it too late?

Don't miss out on this analysis and tips for trading the US markets. Check out the video now!

Join us and take your trading to the next level with the Reversal Catcher System.

Trial available at https://optioninvestors.club/rcs-trial

Open trades we are tracking during these videos

IWM trade (opened on 27 April 2023, closed on 3 May 2023)

Entry

• Options: bought $167 put, sold $162 put (June 16th expiration for both) to open a "bear put", or "put debit spread"

• Price paid: 0.99

• Size: 2

• Max capital risk: $198 ($99 per spread)

• Max profit potential: $802 ($401 per spread)

Management

• Added 1 spread on 1 May 2023 for 0.76

• New average price: 0.91

• New size: 3

• New max capital risk: $273 ($91 per spread)

• New max profit potential: $1,227 ($409 per spread)

Exit and result

• Closed on 3 May 2023 before the rates decision, to limit exposure

• Exit for 0.97

• Capital recovered: $291 ($97 per spread)

• Result: +$18 (+6.59%)

AAPL trade (opened on 28 April 2023)

• Options: bought $185 call, sold $195 call (August 18th expiration for both) to open a "bull call", or "call debit spread"

• Price paid: 2.20

• Size: 1

• Max capital risk: $220

• Max profit potential: $780

XLE trade (opened on 28 April 2023)

• Options: sold 75 put, sold 95 call bought $185 call, sold $195 call (July 21st expiration for both) to open a short strangle

• Credit received: 2.07

• Size: 1

• Max capital risk: unlimited

• Buying power used: $848

• Max profit potential: $207

• Statistical probability of profit if held until expiration: 70%

• Statistical probability to get +50% between opening and expiration: 88%

XLF trade (opened on 3 May 2023)

• Options: bought $32 put, sold $29 put (June 16th expiration for both) to open a "bear put", or "put debit spread"

• Price paid: 0.58

• Size: 3

• Max capital risk: $174 ($58 per spread)

• Max profit potential: $726 ($242 per spread)

Want to trade the reversals with us?

If you would like to test the Karinen Momentum indicator used in this video, you can start a trial at https://optioninvestors.club/rcs-trial