Yesterday we saw a slew of earnings reports. Google (GOOGL) drew the most attention with its 20:1 split coming in July. We were looking for either a dip-and-rip or a sell at the open.

SPY ended up running right into resistance at the 457.5 watchlist level in premarket, along with some selling pressure. That added to the profit-taking on GOOGL.

If you got short on the VWAP at the 3000 level break, the 3000 puts were going for about $41-$44. They went as high as $98 when it bounced at our 2917 watchlist level. That gave us a chance to flip long and swing the 3100 monthlies. We're holding onto those for the bigger picture.

SPY seems pretty extended after the rallies from the lows. We're expecting it to break 460 this week, possibly followed by some selling.

NVDA Rides the AMD Coattails

Advanced Micro Devices (AMD) also reported earnings and gave a huge gap up. It even took NVIDIA Corp (NVDA) with it. Someone on the Edumomo team called out in the Gold room to swing NVDA in lieu of AMD. The calls were up nicely this morning. The NVDA 260 calls went from $1 to nearly $5 at the open!

AMD also gave us a great short this morning as the market fell. Once it broke the 129 watchlist level it was game on. The 125 puts went from $2 to a high of $5.50!

PYPL Faceplants

PayPal (PYPL) released earnings and got absolutely killed in the after-hours yesterday. We capitalized on it in the AM, grabbing puts right out the gate. The 135 puts went from $2.50-$3.50 to a high of $8.70 before it reached capitulation and gave a nice bounce ... all the way up into VWAP. It couldn't reclaim it until near the close.