Weekly Summary 10-3-2025
Oct 07, 2025
This week delivered exceptional volatility and explosive option payoffs across the indexes. Clean divergences on the SPY and Russell 2000 produced multiple 2,000–2,500% moves, while the QQQ lagged with fewer clean entries. Traders who stayed focused on short-term time frames captured rapid reversals and outsized percentage gains.
Key Highlights
• SPY Puts Explode: Friday’s noon divergence delivered a run from $0.08 → $1.48 — nearly a 2,000% return.
• Russell 2000 Puts: Double-top divergence on 5-minute chart sent contracts from $0.04 → $0.81, another 2,000% payoff.
• Mid-Week Action: QQQ double-bottom pattern on Wednesday produced 20–30× returns; Monday’s late-day SPY V-pattern gave 8–9×.
• Pattern Consistency: Repeated divergences across 10- and 15-minute charts made this one of the most lucrative short-term trading weeks of the quarter.
Market Trends
Volatility: The VIX signaled early reversals each day, confirming intraday turns with remarkable accuracy. Volatility remains the key driver of momentum trades.
Performance: The Russell 2000 outpaced large caps again. SPY and QQQ were mixed — directionless until divergences confirmed. Short-term traders who waited for clear setups were rewarded handsomely.
Best Trades of the Week
• SPY Noon Collapse (Fri 10/3): Textbook 5-minute divergence; puts soared nearly 2,000%.
• Russell 2000 Double Top (Fri 10/3): Sharp MACD decline signaled entry — near-perfect timing.
• QQQ Double Bottom (Wed 10/1): 5¢ calls ran to $1.50 — a 30× return in under an hour.
• SPY Late-Day V Pattern (Mon 9/29): From under 10¢ to 75¢ — clear divergence, clean exit.
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SPY 10-minute chart with MACD divergence down just before 9am Pacific
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Hourly chart of SPY 669 puts expiring 10-3-2025 went from 8c to over 1.40 in under 2 hours
Trading Philosophy
• Pattern Clarity = Profitability: Wait for confirmed divergences before entering any position.
• Price and Time Matter: Cheap options (under $0.10) with strong technical context offer unmatched risk-to-reward.
• Compounding Mindset: One 2,000% trade turns $1,000 into $25,000 — the rest is compounding pure profit.
Looking Ahead
Expect continued volatility and opportunity in small-caps as earnings season approaches. Stay disciplined — focus on short-term divergences, keep position sizes small, and trade only what’s clear.
P.S. This market rewards precision, not prediction — stay sharp and let the charts lead the way.