So close ... We saw a nice relief rally in the indices last night. Alas, it was not meant to be. The ES consolidated right under 4600 in the morning but just couldn't break above. What followed was a quick selloff into our lower watchlist levels. SPY 458 puts went from $1.30 to a high of more than $3.50.
That wasn't even the end of it. SPY flushed at the end of the day. I called out to the team my interest in 455 puts when they were at $0.5. They went over $3 at the flush!
Overall, ES and NQ still look fairly bearish, but the consolidation and chop after the morning push/sell tells us that there are definitely buyers stepping in. Looking forward, I fully expect another 5-10% drop by February, per our watchlist levels.
TSLA Drops the Ball
Today Tesla (TSLA) showed none of yesterday's strength. It tried to reclaim the 1050 level at the open but found a brick wall instead. You could have grabbed the 1050 puts after the initial rejection between $25-$26. They promptly went to $60, right at that 1000 watchlist level. God, we're good.
MSFT Rips and Dips
Microsoft (MSFT) ripped and dipped after yesterday's news. The 310 calls tripled from $2 at the open to $6 in less than a half hour. If you then flipped short, the 310 puts went from $2.20 at the top all the way to $5.50 before a lunchtime rally.
Big Last-Minute Call on SHOP
I called out Shopify (SHOP) to the team in the early morning. It looked strong, a lot of the Edumomo members got in, and it paid off. The 1100 calls went from $14-$18 to a high of $39. I'm not always right, but when I'm right, I'm right in a big way.
Hunger Pays Off on NVAX
Analyst Hunger gave everyone a lesson in patience and correct sizing. The Novavax (NVAX) play he called yesterday ended up more than doubling from $3.50 to $7.50.
Making Bank on SOFI News
SoFi Technologies (SOFI) joined our list today after officially becoming a bank. We were watching for momentum. It initially saw profit-taking at the open for a short opportunity. Alternately, you could have grabbed it long after the morning action settled near our 13.3 watchlist level. This week's 14 calls more than doubled from $0.25-$0.30 to a high of $0.70 before selling off with the indices. Awesome!
Member Trade of the Day
Edumomo member Tg777 took SPY short, then long, then short again — with an assist from some Mongodb Inc (MDB) puts — to end the day up 9.56%. Way to play it!