The earnings drama continued with Meta (FB) and Spotify (SPOT). After FB dropped hard, we saw the market sell in the overnight session, with SPY opening right around our 450 watchlist level.

This was a great risk-reward balance for a long play. Unfortunately, the uptrend we were looking for didn't materialize. It mostly just chopped around. No matter, though. If you played level-to-level you still did pretty well. The 450 calls went from about $3.30 to a high of $5 before finally kicking into sell mode.

That was our signal to flip short, using the watchlist level above as our risk. The 450 puts did nicely for us, shooting from $1.60-$1.80 to a high off $4.20.

Amazon (AMZN) announces earnings tonight. We're all on the edge of our seats.

FB Flushes after ER

FB gave us a quick flush as soon as it broke the 245 watchlist level. The 240 puts went from $6 to $10 in a space of 15 minutes. After that, we saw a nice squeeze followed by more selling.

SPOT Pop Makes an Even Better Short

SPOT followed FB's moves for the most part, but it also gave us a little pop for a better short entry. The pop was right into our 175 watchlist level, allowing us to grab 170 puts for $3-$5. They went as high as $15 at the lows! Awesome.

PYPL Selloff Continues

The Paypal (PYPL) sell train continued after repeatedly popping back into 130 yesterday. We were watching the 128 break, and it happened fifteen minutes after opening. The 130 puts went from $2.75 to a cool $6. It could continue to sell ... we just have to wait and see.

TSLA Accelerates

Tesla (TSLA) offered us a nice little breakout, building up pressure under 900 before shooting up a cool 40 points. The 900 calls went from $15-$18 to a high of $42 before finally returning to Earth and went on a nice sell spree. At the lower high the 930 puts went for $16 and traded for $42 at the low.