September Options Rollover These two XLE call positions from earlier in the summer have done well. Both are now governed by our 50% trailing-profit-stop rule after reaching triple-digit gains. These calls expire on Friday and we want to continue XLE positioning into the 4th quarter. With the help of analysis from AI (ChatGPT Plus Plus), the December $65 call is the standout. XLE Dec $65. Call Why December $65? With 93 days remaining, the $65 strike gives us roughly a .50 delta, substantially more time than November, relatively modest time decay, and exceptional open interest of more than 38,000 contracts. It gives XLE time to work while keeping us close enough to the money to participate meaningfully in another leg higher. XLE 2-Day If this Wave 5 projection plays out, the next leg up could be a doozy, carrying XLE well into the $70s. Interest Rates The Fed announcement may provide our next aggressive market-timing trade—but probably not today. QQQ is already compressed between declining resistance and rising support, leaving very little room before something has to give. Let the markets digest the news and give us a few hours to determine whether the initial reaction is real or merely a knee-jerk move. A confirmed break above resistance or below support could establish the next intermediate-term trend. If that happens, the move should last weeks, not hours. QQQ 2-Day QQQ is running out of room. The Fed may provide the catalyst, but the chart will provide the confirmation.
