SPX Rebounds 1.1%, Tariff Ruling, Big Earnings Ahead + Free Trade Idea
Hey Traders,
U.S. stocks moved higher for the week ending 2/20, with the S&P 500 gaining roughly 1.1% to close near 6,909, snapping its prior losing streak. The rebound was largely fueled by strong Q4 earnings, with about 75% of companies beating on the bottom line, helping restore confidence after recent weakness.
Markets also caught a boost after the Supreme Court of the United States struck down broad Trump-era global tariffs, removing a key overhang that had been weighing on sentiment. That said, follow-up news of a new 15% tariff kept trade policy in focus. We saw rotation out of mega-cap tech and AI names into industrials, energy, and materials, though tech recovered into the end of the week.
On the macro side, Q4 GDP came in softer than expected at 1.4%, partly impacted by a government shutdown. Compared to last year, inflation also rose to 2.9% in December, reporting the largest increase since March 2024.
👀 What I’m Watching This Week
Earnings season continues, and two names I’m focused on:
- NVIDIA (NVDA) – Still the bellwether for AI sentiment and semiconductor momentum. Guidance and AI Capex spending will matter more than the headline number.
- Hims & Hers Health (HIMS) – This stock has been absolutely hammered, down 78% from its all time high. It’ll be interesting to see if their earnings and guidance can provide a boost to the stock and reverse current investor sentiment.
On the economic front:
- Jobless Claims (Thursday) – A pulse check on labor market stability.
- Core PPI (Friday) – Another key inflation input that could influence rate expectations.
With inflation data still front and center, volatility could pick up again depending on how these numbers come in.
đź’ˇ Free Trade Idea of the Week
Here’s an income setup I’m looking at:
Ticker: Advanced Micro Devices (AMD)
Current Price: $200.15
Strategy: Cash-Secured Put
Strike Price: $185 (right near the 200-day moving average)
Expiration: 2/27/26
Premium Collected: $170
ROI: 0.91% (~47% annualized)
This allows us to collect premium while targeting a technically significant support level. If assigned, we’re entering AMD at a discount near its long-term trend support.
As always — position sizing matters.
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Trade smart and have a great week ahead!
Gautam
(Your Financial Freedom Coach)
⚠️ Disclaimer: Options involve risk and are not suitable for all investors. Returns are not guaranteed. This message is for educational purposes only and not financial advice.
