 Hey, good morning, everybody. Lee Lowell here, smartoptionseller.com. How's everyone doing today? It is Saturday, January 30th, 2021. We are getting towards the end of January already. Listen, we've got a lot to talk about today. I mean, everyone who's been watching the markets and even people that aren't watching the markets are all talking about GameStop. So we will be talking about GameStop today. In this video, I've got so many calls from people, so many emails saying, what's going on? What happened in the market this week? What is the deal with GameStop? What happened? Brokers are not letting you trade and it's gone up like thousands of percent. People are making millions of dollars. Lee, tell me what is happening with GameStop? All right, so that's what we will be doing today. I'm gonna show you some charts. I'm going to show you some options trades. I'm going to talk about what is happening with the short sellers and why they've gone bankrupt or lost billions of dollars. It's just insane and I've never seen anything like it in my 30 years being in the business. This is even bigger than Bitcoin and Bitcoin's been crazy as well. So let's jump right in and talk about GameStop and some of the other heavily shorted stocks that have gone up this week as well. We'll look at all them and I'll give you an idea of what's been happening and some of my thoughts on what's been happening and a couple of things that I've done as well. So let's jump right in and talk about GameStop. Let's first of all open up the chart for GameStop so we can see what's happening. Okay, here is a chart of GameStop. Now for those of you that may not know, GameStop is a physical retail brick and mortar store where you can buy and sell video games and video game equipment and all stuff like that. And I have a son who, a 15 year old son who in the past we've gone to GameStop many times to buy video games for him. And it's one of those stores that all gamers know and have flocked to in the past. But over the last few years, we all know physical retailers have been going out of business because everything's moving online and even video games are all being downloaded these days. So you don't even have to go into the stores anymore. So GameStop was going the way of blockbuster where people don't need to go into physical stores anymore. So GameStop's been on the way out. And as you can see, here's a chart of GameStop going back about two years or so. I mean, the stock hasn't been more than $5 a share for many, many years. I can go back even farther. Let's take a look at, we can look at a weekly chart. This goes back to 2012. And you can see the stock, $20 here, got up to high 30s here. But for the last four or five years, it's been just down trending, moving along with all these other stores going out of business. And just in the last 2019, it's been a sub $10 stock, $5 stock. And no one would ever think otherwise. But what's happened with GameStop recently and in the past is that there are people out there that are shorting the stock. And for those of you that might not know, shorting a stock means that you actually sell a stock hoping that its price will go down. You don't have to own the stock first in order to sell it. I was trying to explain to my son yesterday, he's like, how can you sell something that you don't own first? He's like, I don't understand how people who sold the stock were losing money. Didn't they have it first and then they just sold it? In the stock market, one of the things that you can do is what's called shorting the market. And you don't have to own the stock first. You're actually selling the stock as your initial transaction. So instead of buying it, you're actually selling it, hoping that the price will go down and then you can just buy it back at a cheaper price if the stock actually falls. So there are these big hedge funds that you've heard about that are shorting millions and millions of shares of the stock, hoping that the price goes down. They're all hoping that GameStop was just going to go bankrupt and their shares would be worthless and they'd make all this money by selling the stock and then they can either buy it back for a couple pennies, lock in their gains. Well, apparently, just this past week and let's move it out to, we'll go to, let's go to a 30 minute chart. So you can really see what's happening if my, okay, so on Monday, was it Monday? Was the 22nd Monday? On what day was the 22nd of January? That was last Friday. Okay, so a week ago, last Friday, the 22nd. You can see here, we've got some action on GameStop. Here's January 22nd and then it just starts to go up. Okay, it started out, it was a $30, a sub $50 stock. Actually, we can go back a little bit further. To January 13th, it was still trading around $20. I'm over here, January 13th. And then it started to tick up into the 30s and then it started to tick up into the 40s and then we had a couple of days where it was just hanging around high 30s. Then all of a sudden, last Friday, it started to move up and then on Monday, it started to move up. And then this is where it hit a hive over, it hit $159 a share on this day right here, which was January 25th. And everyone's going crazy. I mean, it started out as a $30 stock, then all of a sudden it started to go up, hit all-time highs. Let's back this out a little bit so you can really see the dramatic moves before we hit almost $500 the other day. So here we go, back on January 13th, $20 stock right here. And then it went up to a high of $38 or so. And everyone's going out of their minds. Why is GameStop going up? And the short sellers are selling more shares. And then it starts to tick up, goes up close to $40, something dollars, hanging around 40, hanging around high 30s, 40s. And then as we move out, it starts to tick up here on the January 25th. That's when we hit this all-time high here of $159. And everyone's just going out of their minds. What's going on with GameStop? Apparently Reddit is an online chat form and they have all these categories, all these little subreddits they're called. And there's topics ranging from all kinds of things. And Wall Street and trading is one of these subreddits called Wall Street Bets, subreddit at Wall Street Bets. And you got all these traders who congregate and talk about their trades. And all of a sudden they're all talking about GameStop and buying GameStop. So you have a mass, these masses of individual traders who are starting to buy GameStop. And you have these hedge funds who also have billions of dollars at their disposal that are, you know, they're probably still trying to short at this thing because they can't believe that the market is going up against them. So they're trying to double down and sell even short, trying to push the market down with brute force with all the billions of dollars they have behind them, thinking that they can push the market down. But in this case, individuals, the, you know, the small traders, retail traders collectively was able to push back against these short sellers and ramp the market higher. Now, of course, GameStop hit $159 and then it came back down to, you know, $65. But then as you can see this week, this is what happened. It's just started to tick up again, tick up again. Now here in the pre-market on this was Thursday, it hit, it went over $500 a share, right? That's 10 times what it was trading $50 just on January 22nd. Massive move just destroyed the short sellers. Now, when you are a short seller, you've sold the stock hoping that it's gonna go down in price. Now, when it starts to go up in price, a short seller has to buy the stock back in order to cover themselves. They will buy back at a loss. Now we're talking massive billions of dollars of losses here on GameStop because, you know, if they sold it at $20, $30, $40, $50, $100, now it's going up to, you know, two, three, $400, they have to buy all those millions of shares back. And in the process, it's just snowballing on itself. They're trying to buy the stock back. You got these individual traders that are still buying the stock outright. And you got other hedge funds that are also shorted. So everyone's trying to buy at the same time and it just creates the snowball to the upside. Now, obviously we hit $500 in the pre-market and then in a tank down to $115, this was after most of the brokers Robinhood and Charles Schwab and Interactive Brokers, I think all them Schwab may or may not have. I don't know, decided to, they're gonna limit or restrict the trading in these stocks because it's affecting the market too much. Now there's a couple things that people are talking about. Number one, they're thinking that these brokers restricted the trading because the hedge funds were getting in the ear saying, hey, you gotta stop this, we're losing too much money. You can't allow people to keep buying this stock. That's what some people are saying. Whether it's true or not, I don't know. But you got people with a lot of money saying, hey, you gotta slow these people down, we're losing too much money. On the other hand, the brokers themselves were saying, we had to halt the trading because it was, we have to protect the customer, we have to protect the market, we don't want things going crazy. So people are all up in arms about that saying, well, you can't restrict us from trading, you're not restricting the hedge funds from trading. We know what we're doing, we know we have money in the market, don't restrict us, buyer beware, we are aware of that. So there's a couple of different camps going on here, and we've got the SEC now is probably doing an investigation on what's going on. But anyway, the restrictions have been lifted. As you can see, the market bounced off of the lows again and went about $475. And then yesterday, Friday, January 29th, it closed about $312. So it's just been this incredible run this whole week. I've never seen anything like it. I was just mesmerized the whole week watching this happen. I didn't get involved except for a very small amount. I traded some options and I'll let you see what I did. But this was just too insane. This was very insane for me. I, you know, there's certain cases where, you know, I just stay out and I watch the action from the sidelines because it's just too crazy. Now, some of you who may have gotten involved, great. I hope you made a lot of money because there was a lot of money to be made. And if you made some, great. Call option buying was just incredible. Selling put options. I sold some put options this week on GameStop, but at very, very low strike prices. I'm gonna show you how that happened. But so you got GameStop and then you have other stocks. Let's put it back a daily chart here. So I mean, this is what you're seeing. Low, low, low prices, just flat line. GameStop's not going anywhere and then you just had this massive run up. I mean, look at, this is what's called a vertical. It's just gone vertical. Now I will say that, you know, we know GameStop as a physical retailer is probably going to die out at some point. You know, I can't be sure, but that's just the wave of things. This, I believe this stock will eventually collapse on itself back down to $20 a share. At some point, can't make a prediction when that will happen or if it may, maybe it won't even happen. Who knows? Maybe GameStop will turn itself around and become profitable and turn into a great business again. Who knows? But it's hard to believe that a company like GameStop, whether they reinvent themselves or not can still be trading at $400 a share. That's just my opinion. You know, do what you want with it. I'm not trading it. I'm not, you know, I'm not ready to put some big money on the line for that because I have no idea when the market will come back down. So I'm just staying out, staying on the sidelines. But you have other stocks like, I'll show you some other stocks that were big news this week. We have AMC, which is the movie theater chain. You know, obviously with the pandemic, no one was going to the movies anymore because you couldn't. And so AMC, one of the biggest movie theater chains in the US at least, it's just on a downward spiral. And then all of a sudden this week as well, started to go back up again because these are very heavily shorted stocks. And I'm going to show you a website that I use that tells me how much of these shares are actually shorted. You have hedge funds and other, you know, big money players that just sell these stocks hoping that the price will go down. So this is AMC, not on the same scale as GameStop. But you know, it started out as a $2 stock and it ramped up over to over $20. So that's a big move for a lot of players, especially if you could buy thousands of shares. GameStop, AMC, BlackBerry was another one. You know, BlackBerry was all the rage before the iPhones came out. So BlackBerry was a $4 or $5 stock and all of a sudden it went up to $29 a share. We have Bed Bath and Beyond. Same thing, had a pretty good jump this week. You know, this is all coming from, you know, these online chat rooms that are just gearing each other up to start buying these heavily shorted stocks. And if you can get enough momentum to the upside on these short stocks, everyone has to buy back this share. So it just snowballs on itself. You got Nokia, you know, the phone maker Nokia, $4 traded all the way up to almost $10. So it doubled itself. That's what you got, these stocks like this. So let me show you a website here that can show you some of these heavily shorted stocks. Now you can go to website, highshortinterest.com right up here. Let me move myself forward so you can see. So here's the names of all the most heavily shorted stocks. Now how do you know if a stock is heavily shorted? Well, you look at the short interest. This column right here, short interest. This tells you what percentage of the outstanding shares are actually being sold instead of bought, okay? So GameStop is the number one stock on the list. And the short interest is 121% of the outstanding or the float of the shares. Float is the number of shares in existence, in existent, I believe, or outstanding shares, one of these numbers. So I don't understand how you can have more than 100% of the outstanding shares being shorted. That means out of all the shares that are out there for GameStop, more than all of them are being shorted. So I'm even a little confused on the number. But anyway, so you go down the list, you got AMC, you got Space, which is the Virgin Galactic holding stock. These are very high percentage short interest stocks, meaning there's so many people selling these stocks, hoping that their price will go down. And when you have enough people that start buying these stocks, then you have this perfect storm everyone has to buy back at the same time. So you have these high short interest stocks, Bed Bath and Beyond. You can just go through the list here. You can see a lot of these stocks that are heavily shorted. So if you get enough people talking about it, hey, let's buy these stocks, you can create this perfect storm of the stock just going vertical. And people have been taking their chances. They've been buying the shares, they've been buying call options, selling put options, very bullish strategies. And obviously GameStop was the biggest player this week. So if you have an interest or you wanna just be more in the know and educate yourself on short interest and what people are doing with certain stocks, you go to any website you want, but I've looked at the shortinterest.com website and it tells you the percentage of the amount of shares that are actually being sold to the short side. So that's where people are finding these stocks and that's why they're talking about these specific stocks. And if you look at the chart of the last week of a lot of these stocks, you'll see that they've just gone vertical. So along with GameStop, there's obviously people have bought the shares, bought call options, sold put options. I just wanna show you some of the numbers here that these option prices we're trading for. Now one of the great things is that when stocks get extremely volatile like this, that means the option prices get very volatile as well, which offers opportunity to make decent amount of money. So if we go back to, let's bring up GameStop here. So you've got this one week trading that's just been incredible. If you go to, let me show you what I'm looking ahead here. If we go to interactive brokers, I wanna show you the chart, the volatility chart. Okay, so in interactive brokers, and you can also go to ivolatility.com, that's one of the websites I use to look at volatility numbers. But in interactive brokers, you can pull up volatility for any stock that you want and its options. Now this is the volatility lab in interactive brokers and this shows the volatility of GameStop options. Now one of the inputs that helps give an option its price, when you buy a call option or you buy a put option, it has a price. You have to pay that price. And one of the components that helps make up an options price is what's called volatility. And it's the fluctuation of the stock, okay? And the fluctuation of the stock gets put into a number and that gets put into the option pricing formula. So GameStop, and back in December of 2020 right here, here's the dates on the bottom. You know, GameStop volatility was under 50%. I mean that's even high for a normal stock in itself. Under 50%, these are percentage numbers. You can see over here on, I'm sorry, this is the price of the stock, yeah, price of the stock here and then, I'm sorry, price of the stock on the left and here's the volatility numbers on the right-hand side. So you can see price of GameStop here on the left-hand side and then the volatility just explodes. It goes from 125% down here. You can look on the right-hand side all the way up over 600% volatility. That's just insane in that short amount of time and I'm going to show you what that can do to option prices, okay? If you're lucky to buy an option at 100% and then all of a sudden it rockets up to 600%, you're gonna make money on that option regardless. Now, some people may have seen this. If you bought a put option this week on GameStop, hoping that the stock would go down and the stock actually went up, typically you would lose money on that put option because the stock went up instead of down. But because the volatility spiked so much, you could have actually made money buying put options even as the stock went up because volatility went up at the same time. So if we bring up, let me go to, let me check the volatility calculator here and bring up this website. So here's iVolatility.com and let me bring up GameStop. When you look at options, this is an option calculator, an option pricing calculator to help you price out options. So on GameStop, let's just say, so when you put in the stock right here, I put in GameStop, it defaults on the left-hand side to numbers that are out there in existence in the market. So it defaulted to GameStop last price of 325. It gives a strike price of 325 at the money and it defaulted to a 600% volatility. That's just insane. Normal stocks trade 30, 40% volatility on a normal day and probably more like 25 to 35%. 600% we're talking and these are numbers that iVolatility comes up with that in the very in tune with what's happening in the market. So let's just say you had bought a, let's go out to February 12th, a very short period of time. The 325 calls and puts right here, here's the value for the call and the put right here, $139 per contract. That's $13,900 just to buy one option contract. That's with a volatility of 600%. Let me just show you what happens. I'm gonna lower this number down to 100%, okay? Because even then that's still high. But on a normal times, GameStop would be trading at 100% volatility. Now watch what happens. These options are worth $139 per contract. You change the volatility down to 100. When I hit calculate, you're gonna see these numbers change dramatically. They're gonna drop dramatically. Hit calculate, now look what happens. These option values went from 139 per contract all the way down to $24 per contract. That's a $2,400 cost coming down from $13,900 cost per one single option contract. So volatility plays a huge, huge deal in the option prices. So let me just show you something else. So let's just say that you had purchased a, when GameStop said 325, let's just say you thought this thing was gonna drop and you bought a $100 put option. We'll get both of the numbers here. With volatility was at 100%, okay? So let's just see what happens. Okay, volatility 100%. Okay, it's not even giving me a value. Let's go out a little bit more in time here. Let's go to March 19th and see if I can get something here. 100% volatility. All right, so what this is saying is, with the strike, with the price at $325, a strike price of 100, because you think stock's gonna drop, you wanna buy a put option and volatility at 100, a put option would cost with 100% volatility, a penny. $1. Now, volatility rises to 600, now it's gonna be worth $53 a contract. Even if the price of GameStop goes up to $500 a share, the put option barely goes down. So if you were able to buy a put option when volatility was at 100% and even if the stock goes up, you're still gonna make money. So people are making money buying calls and buying puts because volatility just rose so much. The volatility overtook the stock itself going up. So remember, when you buy put options and the stock goes up, that put option is gonna drop in price, typically. But volatility skyrocketed so much, it overtook the effect of the stock rising. So your put option went up as well and call options went up dramatically. So anything that people were buying, puts or calls made money this week only because volatility spikes so much. It's incredible. So what happened with some of these options? Well, let's take a look at an option chain on GameStop. Okay, so here's our option chain on GameStop. Now, GameStop last price was $312 yesterday, Friday, January 29th. And let's just look at some of these option prices. For February 5th, which expires next Friday, you get six days, these put options, these downside put options, okay, they have 50 cent put options, $1 put options, every strike here all the way down to a 50 cent. So we've talked about selling put options in the past and when you sell a put option, not only are you getting the money right off the bat, but you're obligating yourself to potentially buy the stock at that strike price. Now, with GameStop trading at $312 a share, you might be thinking, okay, well, I wanna buy GameStop at $20 a share, let's say, because it's at $312, if I can get it for $20 in the next six days, let's just see what happens. So you scroll down and you can see that the $20 put options are trading, went out yesterday, almost 50 cents per contract. That's just insane. Someone's gonna give you $50 for your obligation to buy GameStop at $20 a share. It's trading at $300. You have one week's time. Do you think GameStop is going to fall from $312 all the way down to $20 by next Friday? Now, there is a possibility that could happen. If everything just collapses on itself, yes, GameStop can fall that far, but I don't think that's gonna happen. There's just too many interested players right now, but that's why it's just so insane. One week option still trading around, look at this, 48 cents at 49 cents, the 19 and a half puts went out 50 cent bid at 60 cent. Now, this is one of the things that I did. Now, in addition to me selling a couple $1 puts on GameStop this week, these were trading 10 to 20 cents per contract, the $1 puts and the $2 puts, now they're worth a penny. So they fell down in value and you can even go out to the normal expiration February 19th. Let's see where some of these things went out yesterday. Here comes the bids and ask populating. The $10 puts on the February 19th options, 20 days from now, $10 puts trading 40 to 50 cents of contract, even the $5 puts, 20 cents fair value, 21 cents for a $5 put, that just obligates you to buy GameStop at $5, not a huge investment. But anyway, so on February 5th, these things expire in a week. One of the things that I did yesterday and this is a guaranteed win. I can make money no matter what happens. Even if the stock collapses to zero or goes up to $5,000 this year, I will make money. And you know why? Because when things get crazy, option prices get crazy too. I was able to buy the 20 puts for one price and sell the 17 and a half puts for an even higher price. So that's how crazy it was. Now, you know that put option prices get cheaper as you get lower in the strike prices. So me being able to buy a 20 put for a cheaper price than what I sold the 17 and a half put is just not, shouldn't happen. But when the stock is crazy like that and volatility is just powering up to 600%, the option prices get all out of whack. So you can find these discrepancies in the market. Now, let me see, I have the time in sales pulled up here. Now, you have these little one lots that trade because you have all these retail traders that are trading one contract at a time. So here's the time in sales. Time in sales tells you how, what each option price traded at a specific time of the day. And you can look at these for stocks as well. Stock prices, option prices, they're called time in sales. So yesterday, here's the 20 put. Yesterday at what time was it? Somewhere in here, I was able to buy, let's see, where am I here? I think it was this one. This is 323 in the afternoon Eastern time. I was able to buy the $20 put for 50 cents a contract. And then on the 17 and a half put, here's my one lot that I sold. I sold it for 56 cents a contract. So I bought the 20 put for 50 and I sold the 17 and a half put for 56. Now, obviously if there were more contracts I could do that multiple times. In this case, there was only one contract but that locked in a guaranteed $6 winner for me. And if the stock drops to zero, I'll make even more money because I'll own the 20 puts and I'll be short to 17 and a half puts. So that would give me a maximum win of $250. And my maximum loss is no loss. $6 is my maximum loss I can make. I can't lose any money. It's a can't lose trade. I can make $6 at the minimum and $250 at the maximum. So these are the discrepancies and option prices. So you can look for these things on crazy stocks like AMC. Now you can see here, over here, this is the actual bid ass prices on the option at that specific moment in time. Now you can see at, let me see if I can show you a better example here. Let's see. So the 20 put was offered at, you can see here, 50 cent bid at 51 cent offer on the 20 puts at 321 in the afternoon. And at 321 in the afternoon, right here, 321, the 17 and a half puts were bid 52 cent bid at 76 cent offer. So you could buy the 20 put at 51 cents and you can sell the 17 and a half put at least for 52 cents, probably something higher than that. And as long as you cover your commissions, it's a can't lose trade. It's a win-win situation. So there are definitely discrepancies and option prices when things go haywire, like that. If you can find it, you do it as many times as you can because buying the 20 and selling the 17 and a half put buying the 20 put for less than what you sell the 17 and a half put is a guaranteed winner. I know there's, people will say there's no guarantees in life, but this is actually a guarantee. You're gonna make money no matter what happens. So it's just crazy. That's what's going on in the options market for GameStop. Now, like I said, the February 5th, 2021 options that expire in six days from now, today's Saturday, option expiration is next Friday. You've got these downside put options that still have a decent amount of premium in them. You got the 15 puts trading 26 bid at 32 cent offer and GameStop's at 312 bucks. I mean, you're taking the risk, one week risk to see will GameStop fall all the way back down to $15 a share? It's just insane. So these are some of the options that are out there for GameStop and it's just been crazy. Now, what's gonna happen next week? Who knows? I mean, these stocks could keep going up. You got the weekend, people are starting to read more, they're learning more, they're going on all these websites. Hey, what's happening with GameStop? What's going on with the short interest? Hey, I wanna get in on the action. There's a lot of FOMO out there, fear of missing out, people wanna get involved. And you can buy call options, but remember with volatility at 600%, any drop in volatility, you're gonna lose money whether the stock goes up or not. You have volatility versus stock price. Which one is gonna affect that option more? Can the stock move up enough to offset any drop in volatility? Or if both volatility and stock move up at the same time and your long call options, that's a double winner. So you have stock price and volatility kind of playing against each other. And that affects the option price. And time to expiration as well. Time starts ticking away. Time starts ticking away. So we'll see what happens. So that is our little lesson on GameStop. Crazy, crazy, crazy. All right, so that's it. So let's move on to our Saturday synopsis. This is the part of our video where we look at the charts, we look at some other charts to see what happened over the last weekend and what may move going forward for the next week. Let's pull up our SPY, which is the ETF for the SP500. We had a pretty good down move the last two days in the market. If you're looking at things other than GameStop and AMC, you were tracking the broad market and other individual stocks. We had a pretty good down move Thursday and Friday. Got a good pullback here. So let's take a look, see what we see in the market. The SP500 had been moving up nicely, nicely, nicely. And then the last two days, Thursday and Friday. Here's where we closed out Friday, yesterday, January 29th, close just below the 50-day moving average. And I have talked about the uptrending 20-day and 50-day moving averages. When a stock is in a good uptrend, that it should either bounce off the 20-day or 50-day. If it moves well below the 50-day and starts heading towards the 200-day, we may have a turn of events, maybe a change in the, we may have a change in direction. So let's see what happened here. The SP500 finished just below the 50-day moving average. You can see, let me see if I can blow this up a little more, a little dash mark on the right side of the bar. This bar is one day's worth of trading. Little dash shows you where it closed for the day. So it closed below the 50-day moving average. It doesn't worry me so much. I mean, stocks can always trade below a 50-day moving average. What we don't want to happen is multiple days below the 50-day. We wanna see some kind of bounce. So if we get, I have a rule of three days. So if a stock or an index closes above or below a certain resistance or support level for three days in a row, that puts me on height and alert that something may be changing. So this one day move down below the 50-day doesn't bother me. You can see here, these moves right here traded below the 20-day and then it snapped back higher. So I'd like to see what happens next week. We're in the middle of earnings season. So some of the stocks didn't put out numbers as well as people thought, or some of the numbers were decent, but yet the market still sold off anyway. So earnings typically sometimes can be a crapshoot. So I'm gonna see what happens next week. I like to see the market bounce. This could be a time to scale back into the market. If you've been waiting for a decent pullback and wanna get in, always look to some of the moving averages to help you decide where it could be a good time to get in. A pullback like this within a broader overall upward trend is usually a pretty good timing indicator that it could be time to get in a little bit, but you do wanna see the market start to move back higher after the drop. So I may wait another day or two to see what the market does, but that's where we ended yesterday. Let's take a look at the Dow Jones and the NASDAQ. Let's look at the NASDAQ. NASDAQ pulled back as well. It traded below, closed below the 20-day moving average, hasn't hit the 50-day yet. So the NASDAQ's been the strongest of the three. So I'll give it a couple more days, see where the market goes, see if it comes down even further, see if it bounces off the 50-day moving average. And we'll just have to wait it out. The Dow and Jocerals got hit pretty good. That one closed well below the 50-day moving average. The 20-day and 50-day were very close to each other, so it didn't take much of a move to drop it below. Let's see. We have this support level here. Let me see if I could move this line out a little bit longer. Let me get rid of this one and I'll draw a new line here. So this is sort of a line in the sand area right here for the market. Before, this was a resistance area. It broke through it. So now it becomes a support area. So if the market starts to dip down, it should potentially bounce right along this level. So we wanna see what happens next week. Let's take a look at the VIX. Volatility indicator. The market definitely blasted higher this week, got out of its dull drums. And when the market goes down, the VIX goes up. This is the volatility indicator. So volatility is increasing in the market. Pretty good move here. And we'll see what happens. If the stock market starts to go back up, the VIX will start to go back down again. These spikes are usually very short-lived. Couple days at most, you get these big spikes. People get fearful. They buy up option prices, which in turn shoots up the volatility. But you can see the spikes are very short in nature. Only a couple of days. So if this starts to tick down, that leads me to believe the market itself will find its footing and start to go back up again and the VIX will go back down. Let's take a look at some individual stocks, see what they've done. We look at some of the most popular stocks out there. We've got Apple that had been on a nice move upwards after it broke out of the congestion pattern, hit a high, all-time high near $145 at the end of last week or beginning this week. And then it just dropped with the market itself closed just under $132 a share, just below the 20-day moving average. So we've got this uptrending 50-day. Hopefully it'll catch it, gain its footing and go back up. I mean, these stocks are in an upward trend. Just remember, you're really not gonna get much return on your money other than the stock market these days. The governments around the world are still keeping interest rates very low. You can't get any return on your money by keeping money in the bank. The vaccine for coronavirus is on its way out, still rolling out. We're hoping that the economies around the world will get back to normal. It's somewhere down the road. So we are moving on the right path. It's just taking a little bit more time than we would like. But I'm still bullish on the stock market. I'm using these pullbacks to step into trades here and there because I'm in for the long haul. I mean, that's how I'm gonna fund some of my retirement by buying stocks for the long term. And you have to use some of these pullbacks as your entry points. Some people will say, well, this is it. I'm waiting for the big drop. I'm waiting for this thing to drop so I can buy back in. Well, how do you know when the drop and the bottom is gonna occur? No one rings a bell that says, here's the bottom. So you have to scale in from time to time. You can't be afraid to buy here. And if the market keeps going down, you buy a little more because if you're just waiting for the market to drop and then all of a sudden it turns around, you're gonna say, well, I'm waiting for it to come back down again so I can get back in. And people use that emotional psychology on themselves all the time. And eventually they just never buy in because they're just too afraid because they always think things are gonna drop. But if you look at the long-term history of the market, we know that the stock market goes up. This is a chart of Apple. We can look at the long-term chart of the stock market itself. The market goes up. Yes, we have dips along the way but that's just part of investing. Okay, so we got Apple. Tesla was another one that had earnings this week. Tesla, and I talked about this last week had drawn this congestion pattern. I said when earnings come out, it's gonna either move up big or move down big. Now, before earnings came out, Tesla started to go up and earnings came out on this day here and people weren't too happy. So Tesla's come down. It's fallen below the 20-day moving average. It's yet to be seen whether it'll keep dropping. People love Tesla and they're willing to keep buying it. So let's see what happens. But Tesla definitely was down this week. What other stocks do we have? We got Microsoft that was trading in this channel, finally broke above it, but seems that it closed right near the resistance level. Let's draw this line out a little bit further here. Start here. So you got this level right around here. And so Microsoft getting through it, but maybe coming back down. What other stocks do we have that we like to look at? Amazon, Amazon still in this range has the congestion pattern still right in the middle. Looked like it was gonna pop through, but came back down. We've got, what other stocks do we have that we'd like to look at? AMD is another one of our favorites. Definitely starting to come back down a little, couldn't get through the resistance, has fallen below the moving averages and now has moved into this little channel here. So I'd like to see AMD move back up. AMD is one of the stocks that we love. AMD is one of these stocks that we love. And so we want to see it move back up. AMD, what else do we have? Nike was another one falling down a little bit through 20 day and 50 day. It's fallen below 50 day for a couple of days now. So we want to see where it goes from here. This is just a general pullback in the market, Netflix. Let's take a look at Netflix. Netflix is another one we like to look at. Definitely had started a breakthrough, the upper resistance and has come back down, had earnings, earnings were here and then it came back down. So if you're looking to possibly get long Netflix, this could be one of those times where you wait for the pullback to the 20 day moving average and go from there. These are not recommendations. These are just things that I see, just ideas on timing. People always ask me about timing. When should I get in? And these are some of the things that you look for. If you got a stock that's uptrending or even if it's in the channel, you can try to wait till it hits the lower end and sell at the upper end, if you're a day trader like that. But if you're a longer term, you wanna wait for a pullback to some of the moving averages. That's just the way that we do it. And we always concentrate on out of the money options because that gives us even more cushion in case we're wrong or our timing isn't exactly right. All right, so that's it. We're getting long again on this video. That's our Saturday synopsis. Once again for next week, let's take a quick look. Market has come down to the 50 day moving average. Let's see if it could find its footing and we get the buyers back in to move it back up. But for now, it ended on a week note. I just, you know, this could be one of those timing plays where it's time to jump in. We'll see what the next week brings. Okay, that's all for the Saturday synopsis for looking at the charts. Lastly, let's go to our website so I can just make sure everyone's on board here. SmartOpsandSeller.com. Download your free put selling basics guide. Put your name and email address here. You'll get a free copy of our guide on how to sell put options and why we love it so much. You can always go to our services tab. We have two newsletters, SmartOpsandSeller and Vertical Spread Trader. Those are the newsletters that we run and we have our one-on-one coaching. I hope this has given you some valuable content in this YouTube video. Please don't forget to subscribe. Hit the red subscribe button in the bottom right-hand corner of the video. Leave me a comment, give me a thumbs up. You know, tell me what you're thinking. You can comment right below. I will always answer. And that's it. That's it for today. I hope it's been great for you. I hope you learned something here and I hope everyone has a great weekend. This is Lee Lowell, signing off.