Weekly Market Summary – 2025-06-27

Market Indicators

Index	Close Price (6/23)	Close Price (6/27)	Weekly Change (%)
GSPC.INDX	$6025.17	$6173.07	2.45%
NDX.INDX	$21856.33	$22534.20	3.04%
VIX.INDX	$19.83	$16.32	-17.65%

This week, major indexes demonstrated solid upward momentum with the S&P 500 (GSPC) rising by 2.45% and the Nasdaq 100 (NDX) gaining 3.04%. Meanwhile, the volatility index VIX dropped sharply by 17.65%, reflecting calmer market sentiment. Overall, investor confidence appears to be strengthening, signaling a bullish market environment.

Current Market News

Tech Earnings Beat Expectations – Several major tech companies reported stronger-than-expected profits, boosting market optimism.
Inflation Data Shows Cooling – Recent inflation figures suggest a slowdown, easing fears of aggressive rate hikes.
New AI Regulations Proposed – Government discussions on AI oversight introduced uncertainty in tech sector futures.
Global Supply Chains Improving – Signs of easing bottlenecks are supporting manufacturing and retail sectors.
Geopolitical Risks Remain Low – No major conflicts or tensions emerged this week, aiding steady market progress.

Upcoming Economic Events

06/30 Monday: US Consumer Confidence Index – Expected to provide insight into household spending power and sentiment.
07/02 Wednesday: Federal Reserve Meeting Minutes – Could reveal Fed’s stance on interest rates and inflation control.
07/03 Thursday: Non-Farm Payrolls Report – A key metric that will influence future monetary policy decisions.

Symbols to Watch

Symbol	Close Price (6/23)	Close Price (6/27)	Weekly Change (%)
MSTR	$367.18	$383.88	4.54%
TSLA	$348.68	$323.63	-7.15%
PLTR	$139.92	$130.74	-6.56%
HIMS	$41.98	$49.41	17.70%
MSFT	$486.00	$495.94	2.05%
AMZN	$208.47	$223.30	7.07%
GOOGL	$165.19	$178.53	8.11%
META	$698.53	$733.63	4.95%
NVDA	$144.17	$157.75	9.46%
IBIT	$58.67	$60.72	3.47%

MSTR: Strong earnings and demand for data analytics tools support its bullish outlook.

TSLA: Recent pullback reflects investor caution around valuation, leaning toward a bearish tone despite company strength.

PLTR: Profit-taking and sector rotation have pressured shares, making the sentiment bearish for now.

HIMS: Significant gain on positive revenue guidance leads to a bullish outlook.

MSFT: Steady growth and diversified revenue streams support a bullish stance.

AMZN: Strong e-commerce performance and cloud growth remain catalysts for a bullish sentiment.

GOOGL: Robust advertising recovery and AI investments encourage a bullish view.

META: Product innovation and solid ad revenue growth maintain a bullish sentiment.

NVDA: Leadership in AI chip technology underpins a clear bullish case.

IBIT: Rising demand in biotech indexes signals a bullish trend ahead.

Trade: Sold MSTR $370 7/3 PUT for $1040 (2.81% ROI)

We like selling PUTs on MSTR because its high volatility consistently offers excellent premium income, making each trade worth the risk. The large price swings boost option prices, allowing us to collect more upfront while managing risk with smart strike selection.

If you are new to option trading, please check out Option Basics.

Risks

The main risk of this trade is that if MSTR drops below $370, we could be assigned and required to buy 100 shares at that price — a $37,000 capital commitment. While we’d still keep the premium, we’d be exposed to potential losses if the stock keeps falling.

This strategy works best with strong underlying stocks that we’re comfortable owning long-term, like MSTR. If assigned, we not only keep the premium but also acquire the stock at an effective discount — making it a smart way to build a position in quality companies.

Entry

On June 12, 2025, we sold a $370 PUT option (CASH SECURED) on MicroStrategy (MSTR) that expired on July 3, 2025. The stock was trading at $379.76, and we collected $1,039.32 in premium.

ASSET
Symbol	MSTR
Option Type	PUT
Strike Price	$370
Expiration Date	03 Jul 2025
ENTRY
Date	12 Jun 2025
Delta	0.30
Option Price (Sold At)	$10.40
Projected Return	2.81% ($1,040/$37,000)

Updates

–

Exit

We then closed the position early on June 27, 2025, by buying it back for $155.68. That gave us a net profit of $883.64 over just 15 days, with minimal risk. This trade gives an annualized return of 74.7%

EXIT
Date	27 Jun 2025
Option Price (Aquired At)	$1.55
Delta	0.15
PROFIT & LOST
Realized Profit/Loss	$885
Return	2.39% ($885/$37,000)
Annualized Return	74.7%

Why Selling CALL Options?

Selling CALL options is a popular strategy for generating extra income, especially if you already own the stock. Known as a covered CALL, this approach lets you collect a premium upfront by agreeing to sell your shares at a set price (the strike price) if the option is exercised.

It’s a great way to earn passive income while holding a stock, particularly in sideways or slow-moving markets. If the stock stays below the strike, the option expires worthless and you keep both the shares and the premium. If it rises above the strike, you still profit — but you sell the stock at the agreed price.

This strategy works best with stocks you’re willing to sell and can be a smart way to boost returns from long-term holdings.

Why Selling PUT Options?

Overview

Learn more about PUT options in What is a PUT option? and How to sell a PUT option.

Selling a PUT option is a great way to earn income while potentially buying a stock you like at a discount. When you sell a PUT, you’re agreeing to buy 100 shares of a stock at a specific price (called the strike price) by a certain date — but only if the stock falls below that price. In return, you get paid a premium up front.

For example, if you sell a $100 PUT on a stock and collect a $3 premium, you’re agreeing to buy it at $100 — but your real cost would be $97 ($100 – $3). If the stock stays above $100, the option expires worthless and you keep the full $3. If it drops below $100, you’ll be assigned and buy the stock — but you’re still better off than if you had bought it at full price.

This strategy works best with stocks you actually want to own, and it’s a smart way to build positions slowly while earning passive income along the way. Just make sure you have enough cash to buy the stock if assigned — that’s why it’s called a cash-secured PUT.

Risks

Assignment risk: If the stock drops below the strike price, you must buy the shares at the agreed price, even if the stock keeps falling.

Capital requirement: You need enough cash to buy 100 shares per contract — this strategy ties up significant capital.

Stock-specific risk: If the company suffers bad news, the stock could fall far below your strike, resulting in a larger unrealized loss.

Tips

This strategy is best used on strong, fundamentally sound companies that you’d be happy to own long term. If you’re comfortable holding the stock, then being assigned isn’t a loss — it’s just a chance to buy shares at a discount and get paid while waiting.

The Wheel Strategy: A Step-by-Step Guide to Generating Income with Options

The wheel strategy is a popular options trading technique designed to generate consistent income by cycling between selling cash-secured puts and covered calls.

The process starts with selling a cash-secured put on a stock you’re willing to own; if the option is exercised, you purchase the stock at the strike price. Once you own the shares, you then sell a covered call against them, collecting additional premium income.

If your shares are called away, you simply start the process over by selling another cash-secured put, effectively “turning the wheel” and repeating the cycle.

This strategy is favored by income-focused investors who want to potentially acquire stocks at a discount while earning regular option premiums. The wheel strategy can help reduce the cost basis of stock ownership and provide steady returns, but it does require active management and carries risks—especially if the stock’s price drops significantly after assignment. To maximize effectiveness and manage risk, it’s important to choose fundamentally strong, liquid stocks and carefully select your strike prices. With the right approach, the wheel strategy can be a powerful addition to your investing toolkit.

How to sell a PUT option in Fidelity?

We are using Fidelity in this example.

First, you want to go to the Research & Quotes page for your stock. On the page, click on the option chain (representing by the link icon) link as shown below.

On the option chain page, you can select the expiration dates that you are interested in.

On the right side, there are PUT options.

To sell a PUT option, you can click on the Bid price.

You should then be shown a trade popup window where you can provide additional information. Please make sure it is a “Sell To Open” action for entering a trade.

Selling Options Instead of Buying!

Overview

Most new traders start by buying options, hoping for big gains with small investments. But the truth is, option buyers have to be right fast — about both direction and timing. That’s why many experienced traders prefer to be on the selling side, where the odds are stacked more favorably.

When we sell options, we become the “house.” We’re betting that the option will expire worthless, allowing us to keep the premium as profit. This approach often has a high probability of success — usually 60–85% — depending on the strike price and expiration. Time is on our side, because every day that passes reduces the option’s value (thanks to time decay).

Example

Let’s say a stock is trading at $105, and we sell a $100 PUT for $2. That means we collect $200 upfront (1 contract = 100 shares). If the stock stays above $100 by expiration, the PUT expires worthless, and we keep the full $200. Even if the stock drops a little, we still win — because we only get assigned if it falls below $100. That gives us a buffer and a higher chance of profit than buying a CALL or PUT.

Conclusion

By selling options, we’re getting paid to wait, and we only take action if the price moves dramatically. It’s a smart way to generate steady income with controlled risk, especially when done on quality stocks we don’t mind owning.

How to Read an Option Symbol

Options trading can seem complex at first, but once you learn to decode the lingo, it becomes much easier.

CALL Example

When you see an option label like “AAPL $210 7/19 CALL”, it might look like a jumble of numbers and letters—but each part carries important meaning. Here’s how to read it:

AAPL – This is the ticker symbol for Apple Inc., the underlying stock.
$210 – This is the strike price. It’s the price at which the option buyer has the right to buy 100 shares of AAPL.
7/19 – This is the expiration date. The option is valid until July 19. After that date, it expires and becomes worthless if not exercised.
CALL – This indicates the type of option. A CALL option gives the buyer the right (but not the obligation) to buy the stock at the strike price.

Example: If AAPL is trading at $220 before July 19, this $210 CALL is in-the-money, since the buyer can buy the stock at $210 and immediately sell it at $220, locking in a $10 per share gain (minus the premium paid). If AAPL stays below $210, the option expires worthless.

PUT Example

Let’s break down what “HOOD $90 7/25 PUT” means, step by step:

HOOD – This is the ticker symbol for the underlying stock, in this case, Robinhood Markets, Inc.
$90 – This is the strike price. It’s the price at which the buyer of the PUT option has the right to sell 100 shares of HOOD.
7/25 – This is the expiration date, meaning the option contract is valid until July 25th. After that date, it expires.
PUT – This tells us the type of option. A PUT option gives the buyer the right (but not the obligation) to sell the stock at the strike price ($90).

Example: If HOOD is trading at $85 before July 25, the buyer of this PUT can sell it at $90, making a $5 profit per share (minus the premium paid). On the other hand, if HOOD stays above $90, the option will likely expire worthless.

Understanding each part of the contract helps you make better decisions when buying or selling options. Always pay attention to the strike, expiration, and type—these details determine how the option behaves in the market.

Covered Call Strategy: How to Earn Income from Stocks You Already Own

A covered call is a popular options strategy used by investors to generate extra income from stocks they already own. It involves selling a call option against shares of a stock you hold—typically in blocks of 100 shares. In return, you collect a premium (cash) upfront, which can reduce your cost basis or provide steady cash flow, especially in sideways or slightly bullish markets.

This strategy works best when you believe the stock will stay flat or rise only slightly. If the stock stays below the strike price by expiration, you keep the premium and your shares. If it rises above the strike price, your shares may be “called away,” meaning you’ll have to sell them at the agreed-upon price—but you still keep the premium and any gains up to the strike.

Covered calls are ideal for long-term investors looking to boost returns on stocks they don’t plan to sell right away. It’s a simple, low-risk way to enhance portfolio income while maintaining a long position, making it a great starting point for those new to options.

Example

Suppose you own 100 shares of Apple (AAPL) at $200. You sell a 1-week $210 call option and collect a $2 premium per share ($200 total). If AAPL stays below $210, you keep both your shares and the premium. If it rises above $210, your shares are sold at $210, and you still keep the $200 premium—effectively selling AAPL for $212. You profit, but you give up any gains beyond $210.

Difference Between In-the-Money, At-the-Money, and Out-of-the-Money Options

When trading options, it’s important to understand how the strike price compares to the current price of the underlying stock. This relationship determines whether an option is In-the-Money (ITM), At-the-Money (ATM), or Out-of-the-Money (OTM)—a key factor in how much the option is worth and how likely it is to be profitable at expiration.

A call option is in-the-money when the stock price is above the strike price, because the buyer has the right to buy the stock at a lower price. A put option is in-the-money when the stock is below the strike price, since the seller can sell the stock at a higher-than-market price. Conversely, options are out-of-the-money when they have no intrinsic value—calls with a strike price above the stock price, or puts with a strike price below it. These are cheaper to buy but riskier to hold.

An option is considered at-the-money when the stock price is very close to the strike price. These options typically have the highest time value and are highly sensitive to changes in the stock’s movement. Understanding where your option stands in relation to the stock price helps in choosing the right strategy—ITM options cost more but are safer, OTM options are cheaper but more speculative, and ATM options are ideal for quick directional moves.