Over the past month, stock markets have experienced big swings, driven largely by evolving policy announcements and comments from the White House. While such dramatic price movements are uncommon under normal conditions, it’s important to understand that they can temporarily spike during times of transition. Although the path ahead is impossible to predict, there’s a growing sense that the most challenging days may be behind us.
In recent days, statements from President Trump and Treasury Secretary Scott Bessent have sparked optimism in the markets. Notably, there have been promising developments suggesting that meaningful trade agreements with India, Japan, or both could be within reach. These potential agreements would provide much-needed clarity and a stronger framework for future global trade relations. Although negotiations with China remain complex, last week’s market gains were largely driven by positive dialogue and signs of de-escalation in U.S.-China trade discussions—an encouraging step toward broader economic certainty.
Normally, stock prices move based on changes in company earnings or economic news. Lately, though, it feels like all the focus is on tariff headlines. That means even a single comment from a leader can cause the market to swing—sometimes in a big way. We often talk about how trying to time the market is nearly impossible, and the current environment just reinforces that idea. That’s why sticking with a time-tested strategy like the Snider Method is so important right now.
Unfortunately, we shouldn’t expect all this uncertainty to disappear overnight. Some comments have even suggested that finalizing these trade negotiations could take years. The good news is that positive discussions and clearer frameworks will help companies make better plans for the future. Right now, there are still parts of the market where trade activity is pretty much frozen. Even in today’s fast-paced world, it takes time for businesses to shift suppliers or move manufacturing if they need to. The goal behind these policies is to strengthen U.S. manufacturing and the economy over the long run, but as we’ve seen recently, that progress will likely come with some short-term bumps along the way.
Option premiums sold last week for options expiring in May were a little better than I expected. On many accounts, they were slightly higher than those of the previous month. The heightened volatility I mentioned in my last note worked even more in our favor than anticipated. Despite a tense start to the month (stocks fell over 2% on Trade Day), the market quickly turned around and posted roughly 7% gains for the rest of the week. Even a modest upward move between now and expiration presents an excellent opportunity to capitalize on those lower prices.
The significant gains since Trade Day have created an opportunity to generate extra income. For AutoPilot clients, now is an ideal time to run the Extra Income Search tool. After logging in and entering an account, simply click the “Run Extra Income Search” button at the top of your dashboard – AutoPilot will search for additional covered call trades to generate income. Stock purchases that were previously out of range may be able to earn some premium today. Large rallies like last week’s make this AutoPilot feature especially powerful. A quick trip back from Bora Bora before the end of April could be worth your time.
With markets showing signs of stabilizing, I’ll be back with another update in two weeks ahead of May’s expiration. While new headlines will undoubtedly continue to move the markets, I’m confident in our ability to navigate these conditions. As option sellers, we are well-positioned to benefit from peak volatility. Our experience through past bear markets and times of uncertainty has proven that by following the Snider Method’s time-tested rules, we can maintain income and position ourselves for faster, stronger recoveries.
Thank you for your continued trust and support!