📩 The Option Premium Weekly Issue - June 29, 2025

Before We Begin: The Truth About Trading Services

Most trading services shout.

They promise overnight riches.They flash “can’t-miss” trades. They showcase 400% screenshots and tell you it’s easy, just follow the alerts. They wrap hype in jargon and sell it as insight.

I won’t do that. You and I both know better.

I’ve been trading options for more than 23 years. And if there’s one lesson that’s stuck, it’s this: What works over time isn’t loud or complex. It’s thoughtful. Repeatable. Honest.

Options trading isn’t a lottery ticket. It’s a profession. And when approached with discipline, it becomes one of the most reliable tools for generating income and long-term growth.

That’s why I built The Option Premium. Not as a flashy alert service. But as a serious resource for traders who want something better, something that actually helps them grow.

This is a publication grounded in real strategies, real capital, and real outcomes. No fluff. No hype. Just the kind of work I’ve done for decades, now shared with traders who want to do this the right way.

I don’t promise magic. But I do offer something rare: a trading service that respects your capital, your time, and your intelligence.

If you’ve found value in this newsletter, consider this your invitation to take the next step.

You won’t see countdown clocks. You won’t get upsold into overpriced masterminds.
Just honest, well-tested options strategies, refined over time and delivered with clarity.

If that sounds like the kind of service you’ve been looking for, I’d be proud to have you join us.

Our Framework: Three Services That Work Together

I offer three services. Each one is built around real trades, clear education, and risk-defined strategies grounded in probability, not prediction.

And they’re designed to work together as a complete options trading framework:

The Income Foundation

Start here. Learn to generate steady income using high-probability trades like cash-secured puts and covered calls. This is your base layer, reliable, repeatable, and ideal for any account.

Wealth Without Shares

Take your capital further with Poor Man’s Covered Calls. We use LEAPS to unlock smarter leverage and build longer-term portfolios, Buffett-style trades, All-Weather exposure, and more.

The Implied Perspective

Add short-term edge with volatility-based trades: iron condors, vertical spreads, and earnings setups built around implied volatility and expected move. This is your satellite layer, tactical, risk-defined, and fully integrated.

Together, these three services offer a flexible system you can shape around your goals, risk tolerance, and account size.

No promises. No noise. Just a better way to trade.

📉 Market Snapshot and Commentary

Summer Rally Heats Up: Why Markets Hit New Highs – And What Comes Next for Options Traders

Markets aren’t just stabilizing, they’re soaring. The S&P 500 and Nasdaq both closed at fresh all-time highs last week, with tech leading the charge. Since the April lows, the S&P is up 24%, and the Nasdaq is up a staggering 33%. Momentum is clearly in control, for now.

But as options traders, we know what that means: momentum + macro uncertainty = elevated short-term opportunity. The setup is shifting toward premium-selling trades on strength and selective directional plays in sectors that could rotate higher.

Let’s break down the three key drivers behind the rally, and what to watch heading into July.

1. Geopolitical Tensions Cool, Oil Prices Collapse

Markets breathed a sigh of relief last week as Middle East tensions eased. After a surprise U.S. strike on Iranian nuclear facilities on June 21, fears of broader conflict briefly spiked. But Iran’s limited retaliation and the lack of disruption to oil infrastructure (particularly the Strait of Hormuz) helped de-escalate fears fast.

The result? WTI crude oil dropped 13% last week, from $75 to $65/barrel.

📌 Options Takeaway:
Lower oil = lower headline inflation = more Fed flexibility = bullish momentum. But for options traders, collapsing oil is a setup to watch in energy names like XLE, XOP, or even CVX and SLB. As IV falls in the space, there may be opportunities to reintroduce bullish or neutral strategies on pullbacks using verticals or short puts.

2. The Fed Is Still Eyeing Rate Cuts

Despite the tariff noise, the Fed remains on a path to ease. In June, they projected two rate cuts in 2025 and more in 2026–27. Meanwhile, recent inflation readings, CPI, PPI, and May’s PCE, continue to trend lower, with core PCE at 2.7% and headline at 2.3%.

Consumer data is also starting to weaken. May’s retail sales and personal spending both softened. This bolsters the Fed’s case for cutting later this year.

📌 Options Takeaway:
Falling rates boost growth names and compress IV in interest-sensitive sectors. Use that to your advantage with bull put spreads in financials or tech, or consider diagonals in rate-sensitive ETFs like TLT or IYR. Additionally, if IV skew flattens further, look for opportunities to open longer-dated PMCCs while extrinsic value is still favorable.

3. Tech’s Relentless Rally

Mega-cap tech continues to dominate. Since April 8, the Nasdaq is up 33%, and the leading growth sectors, tech, communication services, and consumer discretionary, are up even more.

Q1 earnings were strong. AI capital spending remains massive. Even tariff concerns haven’t dented tech’s growth narrative. But now valuations are stretching again.

📌 Options Takeaway:
Momentum is your friend, until it isn’t. The move in tech may cool temporarily, so neutral to bearish spreads in overheated names can work, especially if RSI gets extreme and IV pops. At the same time, undervalued sectors like financials and health care are worth rotating into with bullish trades before they catch up.

Can the Rally Continue?

In the short term, yes. But as traders, we’re focused on catalyst windows and volatility inflection points:

• Tariff newsflow is still unresolved. The U.S. just ended talks with Canada. More trade headlines are coming.

• The U.S. tax bill remains in limbo, with potential economic effects not yet priced in.

• Growth could cool if tariff-driven inflation crimps consumer demand in Q3.

We already saw the rally fade late last week after the Canada news hit. Expect more whipsaws.

📌 Tactical Positioning:
Use pullbacks to layer in bullish positions on high-IV setups. Deploy defined-risk credit spreads when IV Rank is stretched. And monitor July’s tariff updates closely—they could swing sentiment quickly, especially in cyclical sectors.

How to Trade the Second Half of 2025

With markets near highs and the Fed tilting dovish, this is a perfect moment for options income strategies:

• The Wheel works well in stable, liquid names where IV is moderate but consistent.

• PMCCs shine in strong uptrends with predictable earnings and momentum (especially in the health care, financials, and industrials catching up to tech).

• Iron condors and spreads become ideal when IV rises but price stays range-bound around recent highs.

We remain overweight U.S. large-cap and mid-cap stocks, with balanced exposure to growth and value. International equities may underperform, but selective allocation still makes sense. In bonds, the 7–10-year space remains attractive with yields near 4.3%.

Final Word

Momentum is with the bulls, but traders should stay agile.

This is a prime environment for thoughtful premium selling… and even better for those who know how to spot short-term IV distortions around macro catalysts. If we see pullbacks on tariff or tax news, those may be the best setups all summer.

Time to stay sharp, stay patient, and let price + volatility lead your trades.

Weekly Market Stats

📰 Weekly In-Depth Articles 

🗓️ Tuesday, June 24th: The Options Seller’s Guide to Expected Move

🗓️ Thursday, June 26th: The Collar Options Strategy: How to Lock In Gains and Limit Risk Without Selling Your Position

🎓 Options 101: The First Steps to Trading

What Is an Options Contract? (Explained Clearly for Beginners)

If you’re new to options and feel overwhelmed by terms like “strike price,” “premium,” or “expiration”, this is the article you’ve been waiting for.

This week’s Option Premium guide breaks down exactly what an options contract is, how it works, and why it’s the foundation of every options trade, no jargon, no guesswork.

✅ Understand the difference between calls and puts
✅ Learn the rights and risks of buyers vs. sellers
✅ See a real-world example using NVDA
✅ Master the five key parts of every contract
✅ Avoid common beginner mistakes (like treating options like lottery tickets)

If you want to build a strong foundation and finally make sense of how options actually work, start here.

👉 Read the full article here: Options Contracts Explained - What Every Beginner Needs to Know

🧠 Mental Capital

Train not just your trading system, but your trading self.

The Law of Large Numbers - Why Small, Consistent Options Profits Beat Home Runs

Everyone remembers the trader who turned $5K into $18K in a month.

Nobody talks about how they went broke three months later.

This week in The Option Premium, we break down the quiet math behind consistent profitability, and the psychological traps that sabotage most traders before they can ever benefit from it.

Inside:

✅ Why high-probability base hits build generational wealth
✅ How your brain confuses luck with skill, and why that’s dangerous
✅ The “Compound Psychology Effect” behind steady decision-making
✅ A real trader’s before-and-after case study (from chaos to calm)
✅ How to design an anti-fragile system that thrives over hundreds of trades

This isn’t about chasing the next 200% winner. It’s about building the kind of boring, reliable strategy that still compounds into millions.

👉 Read the full breakdown: The Law of Large Numbers

📊 The Implied Truth: Weekly Table Overview

Unlock the Full Picture – Upgrade to access the complete table, including all 100 equities (AAPL, META, AMZN, NVDA and more)

Broad Rallies, Shallow Volatility, and Where Sellers Still Have Edge

Equity markets are flying, RSI readings are stretched, broad market breadth is climbing, and implied volatility has collapsed. That’s good for bulls, but tricky for premium sellers chasing yield. The key this week: target select ETFs still offering elevated volatility, even as others compress. Let’s decode the opportunity.

Where Premium Sellers Should Be Looking

To find edge, we combine high implied volatility (IV) with elevated IV Rank and mean-reversion potential based on RSI. This week, most major indices are overbought, but still offer pockets of elevated implied vol.

Top Premium-Selling Targets This Week

RSI Extremes: Where the Rubber Band Is Stretched

Markets are overbought across the board. For mean-reversion traders, that means potential downside hedges or defined-risk bearish trades.

Neutral RSI + High IV Rank: Best “Fade the Crowd” Setups

Some ETFs are flying under the radar: decent IV pricing but non-extreme RSI, offering lower-risk entries for sellers.

Hidden Edge – What the Breadth & VIX Are Saying

Market Breadth (Climbing Fast)

• $SPXA200R = 51.3%, $SPXA50R = 70.6%
  → This confirms strong internal market participation. A breadth thrust like this typically sustains momentum—but also precedes short-term overbought snapbacks.

VIX (Volatility Index)

• VIX = 16.32, IV Rank 25.5, RSI(2): 4.3
  → Volatility is deeply oversold and may bounce. When VIX RSI is this low, volatility sellers should be cautious of short-term IV spikes.

What This Means for New Options Traders

Here’s how to interpret the signals this week:

Final Dashboard Summary – This Week’s Key Takeaways

What’s Behind the Paywall?

In The Option Premium, this macro view is just the beginning. Paid members get:

• 🔔 Real-time trade alerts with clear entries/exits

• 📊 Portfolio breakdowns for PMCCs, condors, and spreads

• 💡 Weekly guidance based on The Implied Truth signals

• 🎯 Risk-defined setups with high win probabilities

My premium subscribers receive complete ETF sector strategies, including exact option structures, entry timing based on RSI(2) signals, and portfolio allocation guidelines for sector rotation plays like the XLF opportunity detailed above.

If you want the specific trade setups, how I structure the entries, and what I avoid, that’s all covered in my premium services.

📊 Quick Reference: The Implied Truth Table

📚 Educational Corner: Options Deep Dive

Which Strike Price Is Best for a Poor Man’s Covered Call?
A Practical Guide for Options Traders

The most important, and often overlooked, decision in setting up a Poor Man’s Covered Call (PMCC) is selecting the right LEAPS strike. That one choice shapes your delta exposure, capital commitment, breakeven levels, and the flexibility you’ll have over time.

This week’s article breaks down:

• How different strike prices influence delta, cost, and probability

• What delta range makes the most sense for long-term vs. tactical setups

• How to align strike selection with portfolio goals and capital constraints

• Real-world examples using SPY across different LEAPS strikes

• Why a blended-strike approach may help smooth risk and returns across a PMCC portfolio

Whether you’re building a core position or rotating names for income, getting the LEAPS strike right lays the foundation for success. This guide gives you a practical framework you can apply immediately.

👉 Read the full article here: Which Strike Price Is Best for a Poor Man’s Covered Call? A Practical Guide for Options Traders

🔗 Let’s Stay Connected

Have questions, feedback, or just want to say hello? I’d love to hear from you.
📩 Email me anytime at [email protected]

📘 Join the conversation on Facebook.
📺 Subscribe to the YouTube channel.

Thanks again for reading. I hope you found today’s insights valuable and worth your time.

Trade Smart. Trade Thoughtfully.
Andy Crowder
Founder | Editor-in-Chief | Chief Options Strategist
The Option Premium