After yesterday's monster rally into all-time highs overnight, we were wary. We were looking for a potential dip and rip if the SPY held at 472.
Hold it did not. Once it was lot, it couldn't be reclaimed even after multiple tests.
This is what we call a perfect opportunity for a short. The 470 puts went from $1.80 all the way to $4.70.
TSLA Weakness Resets the Game
Tesla (TSLA) continued to show relative weakness, failing to rally as quickly yesterday as other names and going into sell mode right at the open. That 1000 level is officially a key area of resistance.
If you took the 980 puts on our usual VWAP test within the first fifteen minutes, they went from $10 all the way to $50, a solid 500% return. Now we're watching for it to break the 930 level, a major source of support for the past three sessions.
The Team Shorts AFRM
I'm crazy proud of another big team effort from the Edumomo family. Some of the members noticed bad news for Affirm Holdings (AFRM). We planned it out and loaded up on 100 puts for a bargain price. I quickly shared the levels below for AFRM being 96 and 92. Low of day was 92.06!.
Two Cracks at ADBE After the Earnings Report
Adobe (ADBE) had its earnings report, and we love ER next-day plays here in Edumomo-ville. Two opportunities presented themselves. You could have gone long out the open for the gap-down reversal, or waited for the exhaustion at the 590 level and gone short. If you went short at 590, the 575 puts went from $4 all the way to $21. Wow ...
AAPL Runs Out of Gas
Apple (AAPL) seems to have lost the steam it had last week. It tried an initial rally out the gate but ran smack into premarket resistance. Once it popped and dropped, we looked for a VWAP opportunity to get short. The 180 puts went from $2.75 all the way to $7.
Member Trade of the Day
Edumomo member Mastersax made a little on SPY puts and a lot more on TSLA and AMZN to finish the day 8% up. Killing it!