Monday's Market Recap (Dec 8, 2025)

navigating the Chop: AI Insights for a Waiting Market

The markets are currently in a state of "quiet chop." If you’ve been watching the screens this week, you’ve likely seen major indices treading water. For the active trader, this can be frustrating—but for the strategic investor utilizing AI investment advice, this is often where the best opportunities for income generation hide.

At Stonki, as an SEC Registered Investment Advisor, we believe that market stagnation isn't a signal to stop; it's a signal to adapt. By leveraging AI-powered options analysis, we help you construct personalized trading plans that align with current market conditions, keeping risk management at the forefront.

Let’s break down the recent market action, what it means for your portfolio, and how options income strategies can turn a flat market into a profitable one.

Market Recap: The Calm Before the Fed

Yesterday’s session was a textbook definition of indecision. The major indices struggled to find direction as investors paused ahead of the upcoming Federal Reserve decision.

• SPY (S&P 500): Finished essentially flat (-0.08%) at 683.63.
• QQQ (Nasdaq): Tech barely slipped into the red (-0.17%).
• IWM (Russell 2000): Small caps took the hardest hit, down -0.71%, indicating a risk-off sentiment.
• Safe Havens: We saw a slight flight to bonds (TLT +0.19%) while Gold (GLD) dipped -0.47%.

Sector Rotation: Defensive Weakness

Interestingly, the sectors that usually protect investors during downturns led the losses. XLU (Utilities) was the worst performer at -1.59%, followed by Materials (XLB), Healthcare (XLV), and Consumer Discretionary (XLY). This unusual rotation suggests the market is repricing risk ahead of macro data.

Big Tech: A Mixed Bag

While the broader market chopped, Big Tech showed divergence:

• NVDA (+1.70%): The clear standout, showing a strong conviction bounce from the $182 lows. AI stock analysis often highlights relative strength like this as a potential bullish signal.
• MSFT (+1.26%): Another solid performer.
• GOOGL (-2.04%) & META (-1.32%): The weakest links among the mega-caps.
• TSLA (-1.76%): Continuing its pullback from recent highs.

How to Trade a "Choppy" Market with AI Options Advice

When the market is moving sideways, buying directional calls or puts can be a recipe for losing money due to theta (time) decay. This is where AI options advice becomes invaluable. Instead of betting on a massive move, Stonki often recommends strategies that benefit from time passing and volatility contracting.

Here is how you can utilize options trading strategies in this environment:

1. Income-Focused Options Strategies

In a flat market, selling options for income is often superior to buying them. Strategies like Credit Spreads (Vertical Spreads) or Iron Condors allow you to profit even if the stock price barely moves.

• The Iron Condor: This is a classic neutral strategy. You sell an out-of-the-money call spread and an out-of-the-money put spread. If the market stays within a specific range (like the current SPY chop), you keep the premium.
• Theta Decay Strategies: Options lose value as they approach expiration. By selling this premium, you put options Greeks—specifically Theta—to work in your favor.

Stonki Insight: Our AI-powered options recommendations analyze implied volatility levels to suggest strike prices that offer a statistical edge, helping you collect premium while defining your risk.

2. The Wheel Strategy for Tech Dips

With stocks like GOOGL and TSLA pulling back, investors looking to acquire shares at a discount might consider the Wheel Strategy.

1. Sell Cash Secured Puts: You sell a put option at a strike price where you would be happy to own the stock.
2. Collect Premium: You get paid immediately for taking on this obligation.
3. Assignment or Expiry: If the stock drops below your strike, you buy the stock (at a discount minus the premium). If it stays above, you keep the cash and repeat.

Stonki provides AI Wheel Strategy advice, helping you identify which stocks have the right balance of volatility and fundamental strength to make this strategy viable.

3. Monitoring Options Flow

Understanding options flow analysis and unusual options activity can provide clues about where the "smart money" is positioning before the Fed meeting. While 0DTE options trading (Zero Days to Expiration) has become trendy, it carries immense risk. Stonki focuses on risk management guidance, helping you avoid gambling and focus on calculated, non-discretionary investment plans.

The Stonki Advantage: Non-Discretionary AI Advice

It is crucial to understand the distinction of using an AI investment advisor like Stonki. We are an SEC Registered Investment Advisor, but we operate on a non-discretionary basis.

What does this mean for you?

• We Advise, You Decide: Stonki creates personalized trading plans and generates AI-powered investment advice, but we do not execute trades or have access to your brokerage accounts.
• You Are in Control: You receive the notification, review the logic (including options Greeks monitoring and risk parameters), and execute the trade in your own brokerage account.
• Constant Vigilance: Stonki monitors and alerts you when it is time to adjust a position, roll a covered call, or close a trade for profit.

This hybrid approach combines the processing power of machine learning investment analysis with the final authority of the human trader.

Looking Ahead: Earnings and The Fed

Volatility may return later this week. We are watching:

• Earnings: Oracle (ORCL) and Adobe (ADBE) report on Wednesday, followed by Broadcom (AVGO), Costco (COST), and Lululemon (LULU) on Thursday. Note that AutoZone (AZO) already missed earnings, dropping 1.67%.
• The Fed: Wednesday at 2 PM is the main event. Interest rate decisions often shake the markets.

Best AI investment advisor app 2025 tip: Don't force trades before a binary event like a Fed announcement. Use this time to review your portfolio, hedge with defined risk options strategies, and set up your watchlist using AI stock analysis.

Conclusion

A choppy market doesn't mean a lack of opportunity; it just requires a shift in tactics. Whether you are a beginner looking for AI investment advice for beginners or an advanced trader seeking AI strike selection recommendations, staying disciplined is key.

Stonki is here to provide the data, the strategy, and the plan. You provide the execution.

Ready to stop guessing and start planning? Let Stonki's AI-powered options analysis guide your next move.