Tech Stocks Dominate, But...

Tech Leads While S&P Stalls—What Covered Call Traders Should Know

The S&P 500 was basically flat today—nothing exciting on the surface. But look deeper, and you’ll see the QQQ (tracking the NASDAQ) just closed at an all-time high of 541.16. Yep, tech’s still on fire.

We’ve seen over 30% growth in just under three months—on strong volume, too. That kind of activity suggests conviction. On top of that, a golden cross just showed up (when the 50-day MA crosses above the 200-day MA), and that’s typically bullish. We also had a few gaps in recent sessions, and while gaps tend to fill, the momentum is undeniable.

So what does all this mean for options traders?

If you’ve been writing covered calls on your tech positions, managing those has likely been challenging lately. Big moves—25%, 50%, even over 100% on individual names—make it tricky to keep up with short calls without limiting potential upside.

In some cases, it’s OK to let some upside go—but when the moves are this big, it’s worth reevaluating your strategy. When in doubt, maybe pull back on selling short calls and let your winners run a little.

#OptionsTrading #TechStocks #MarketUpdate #CoveredCalls #WealthBuildingWithOptions

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