The CSP Lab Weekly Review
Locking in gains on LMND & TQQQ, new entries in TSLA & APP, and preparing for a heavy data week.
Welcome back and happy Sunday!
We just wrapped up the first real trading week of 2026 and the market is already giving us plenty to work with. The holiday cobwebs are gone and volatility is creeping back in which is exactly what we want as premium sellers.
This week we locked in some solid wins on names like LMND and TQQQ while planting seeds for the next leg up in Tesla and AppLovin. We also have a heavy week of data ahead so let’s get straight into the details.
Trade Review
Cash Secured Puts
PTIR We sold the 22.45 strike puts for 2.30 with a February 20 expiration. The stock was rejected at the 50 SMA. The option is currently trading at 1.93 and we have a limit order set to close at 1.15
PTIR rejection at the 50 SMA. We are managing the short put position here. RIVN We sold the 18.00 strike puts for 1.01 with a February 20 expiration. It is currently trading at 1.23. We have plenty of time left on this trade with a breakeven price of 16.99.
U We sold the 42.00 strike puts for 2.38. It is currently trading at 2.68. I really like Unity long term and we have plenty of duration left for this thesis to play out.
Share Accumulation and Active Trades
APP We are long shares with the stock currently in bounce mode after our CSPIndicator signaled seller exhaustion. We will take the majority of shares off at the 50 SMA or the middle of the regression channel.
APP showing seller exhaustion and a strong bounce. Targeting the 50 SMA for partial profit taking. TSLA We are long shares and looking for a continuation of the trend. Our first price target is 455. We will exit the majority of the position there and immediately move our Stop Loss to breakeven.
TSLA trending higher in the channel. We are long with a target of $455. WYNN We entered a new position here and are currently sitting at breakeven on the trade.
Covered Call Management
SOFI We were assigned at 28 and sold the 29 Calls expiring January 23.
ETHA We were assigned (long ago) at 31 and sold 31 and 32 Calls expiring in February and March to lower our cost basis.
Trades Closed and Managed
LMND This was a textbook trade. We entered right at the bottom when the CSPIndicator signaled that selling pressure was exhausted. The stock responded with a nice bounce reaching 21% at its peak so far. We closed the 65 puts early to secure the premium of $161 realized.
A textbook trade on LMND. We entered at the channel bottom and captured a 21% move. MP Similar to LMND we entered when the CSPIndicator flashed that sellers were tired. We took a large chunk of the position off after a 9% run up. We are holding runners which are currently up 18%. Stops are set to breakeven so this trade is now risk free.
MP hit our first target. We locked in gains and are now riding risk-free runners. TQQQ Closed the 50 strike puts for a solid profit of 119 realized.
PEP We tried to play the bounce here but our timing looked a little early. Once price broke below the 200 SMA we respected our rules and exited immediately for a scratch loss.
PEP failed to hold the 200 SMA. We followed our rules and exited for a scratch loss.
Watchlist and Potential Setups
We are stalking several names that are setting up for potential entries.
AAPL Apple continues to sell. We got an indication from the CSPIndicator but we passed on this trade because the price is still showing heavy selling pressure and has not confirmed a reversal yet. We are watching for a curl here and may enter long
AAPL is still searching for a bottom. Watching for a curl reversal pattern before entering. HPE This is currently on the watchlist for a bounce with elevated volatility. A Cash Secured Put is the leading candidate for this name
HPE testing support levels. High IV makes this a prime candidate for a Cash Secured Put. CSX We see the same setup here. The CSPIndicator shows sellers are drying up with a nice bounce at the 50 SMA
CSX finding buyers at the 50 SMA. The intermediate trend remains intact. FSLR Implied volatility is elevated on this name which makes the premiums attractive
FSLR pullback offers an opportunity to sell premium into elevated volatility. Other Names We are watching SITM and SNDK which is currently breaking out again
SITM showing expanded range and volatility. We are monitoring for a defined setup.
Macro Overview
Market Technicals
The broader market remains in a strong uptrend though we are seeing some consolidation near psychological levels.
S&P 500 The index is currently trading around 6966 just shy of the massive 7000 level. The daily chart shows a clear up and to the right structure though the recent candles suggest some hesitation as we breach all time highs. We are watching for a potential breakout above 7000 or a retest of lower support levels to build liquidity
The S&P 500 is knocking on the door of 7000. Watching for a breakout or consolidation. Nasdaq 100 Tech continues to lead with the QQQ trading near 626. Similar to the SPX the trend is robust but the price action has been choppy in recent sessions. We need to see sustained volume to push through these levels
Tech leading the charge. QQQ remains in a robust uptrend despite recent chop.
The Week Ahead
This is a heavy week for economic data which could act as a catalyst for the next leg of the move.
Tuesday CPI Data This is the main event of the week. Core CPI Year Over Year is forecast at 2.6% while the headline CPI is expected to come in at 2.7%. The market will be watching closely to see if inflation continues its trend or cools further.
Wednesday PPI and Retail Sales We get the Producer Price Index which gives us a look at wholesale inflation. Retail Sales will also be released which will give us insight into the strength of the consumer heading into the new year.
Fed Speakers There is a parade of Fed officials speaking this week including Tom Barkin on Monday and Thursday and John Williams on Wednesday. Their comments will be parsed for any shifts in monetary policy expectations.
Earnings Season Begins
We are officially kicking off Q4 earnings season. The spotlight will be on the major financials.
The Big Banks JPMorgan Chase Bank of America Wells Fargo and Citigroup are all expected to report. Their guidance will set the tone for the rest of the market particularly regarding the health of the consumer and loan demand.
Other Notables We are also watching for reports from Delta Air Lines which often gives us an early read on the travel and leisure sector.
Disclaimer: This is not financial advice. All trades are for educational purposes only.