Another day ... another gap-down for SPY. We opened just below our 447.25 level, giving us a chance to get short ... but only if we were willing to be patient. Even then, we never quite got the move we were looking for.
But with good planning, it wasn't a disaster. Once it reclaimed 447.25 and VWAP, it was time to go long. That one worked out just fine. The 448 calls gave us a cool near-double, from $2.20 to $4.20. Awesome!
SPY is still struggling in the 450-452 range, so we will have to see what the afternoon brings. Maybe another end-of-day selloff? We don't mind those one bit.
PTON Takes Off After ER Move
Peloton (PTON) made the watchlist again after moving its ER to before the open instead of after the close. Fine by us!
Initially we were game for the short, but the momentum was so strong that we went long instead. If you waited until it cleared the 32 watchlist level, the contracts really moved! The 35 calls went from $1.50 to a high of $6.60 by the time everyone got back from lunch.
HOG Revs Up
Harley-Davidson (HOG) popped up this morning in my hunt for movers. Its surprising revenue growth had to draw some volume. It was slow going at first as it consolidated after the gap up, right on top of our 39.5 watchlist level. We usually take this as a bullish sign. If you grabbed the 40 calls, you could have snagged them for $0.60-$0.70 and they went as high as $2 just shy of our 42 watchlist level. Nice gains!
FB Weakness Persists
Meta (FB) is still on our list from last week, continuing to show some nice range. Today it bumped its head on our 225 watchlist level twice in the morning for a low-risk short opportunity. The 220 puts went from $3.00-$3.30 to a high of $6.25.
It's still looking pretty weak. Let's see where it ends up. I wouldn't be surprised to see 210 or even 200 by the end of the week if the trend continues.
DWAC is Back After Truth Delays
Digital World Acquisition Corp (DWAC), the infamous Trump-backed SPAC, was back on the radar today after suffering from launch delays for the former president's "Truth" social network.
It opened with a gap down and a quick selloff at the open. You could have grabbed it long at our 77 watchlist level for a bounce, or kept your eyes peeled for the rejection at the 86 watchlist level for the short. Either play would have been a winner.
Using common shares, you could have risked $1 for a nice nine-point move on the upside. On the downside you could have risked $1 and seen a six-point move before it finally found support. Great risk-reward in either direction! Power of planning.
Member Trade of the Day
Edumomo member Karmaedge bounced back from a red swing on Upstart (UPST) to trade SPY, Tesla (TSLA), and Moderna (MRNA) all the way up to a 9.4% portfolio gain.