What a day! Consumer Price Index numbers came out right before the open and caused SPY to plunge from 457 all the way down to 451. That was our absolute best-case scenario to go long.

If you grabbed 452 calls at the open, they were $2.60-$3.00. They went as high as $6.30 before failing at the previous day's close ... and that was our cue to flip short.

As you know, we hunt for amazing risk/reward, and that's exactly what we saw. The 455 puts went for $1.40-$1.80 at the high of the day, and hit $6.50 by the time SPY tested 449! Wow.

Great day all around. Are we looking at the setup for the next leg down and a retest of SPY 420? Lets find out in the coming weeks!

TWLO Puts Quadruple

Twilio (TWLO) popped up on our list after its earnings report yesterday. It couldn't claim the 230 watchlist level on its third attempt, so we went short and sat on it. The 220 puts went from $2.50-$3.00 to as high as $13 before finding a double-bottom.

Gap-Up Drama at the Mouse House

Mickey Mouse also showed up on the watchlist. Disney (DIS) had greater than expected growth on the strength of Disney+ and gapped up nicely after hours yesterday. CPI sent them back down to earth and it couldn't hold our 156.6 watchlist level. We went short vs. the high of the day and watched the 155 puts go from $1.30-$1.50 to a high of $4.50 before it finally found support. Zippadee-Do-Dah!

Pouncing on AFRM Leak for Quick Gains

A few members called out Affirm Holdings (AFRM) when some news leaked. It wasn't on the watchlist yet, as earnings weren't due until tonight. But we took the head start and went short on AFRM ... as well as Upstart Holdings (UPST) in anticipation of a sympathy move.

Both plays made nice quick gains. UPST 110 puts went from $2.60 to a high of $8 in a matter of minutes. AFRM 60 puts went from $1.30-$3.00 to $11 in less than ten minutes. Talk about fast work.

TSLA Rallies, then Falls

Tesla (TSLA) surprised everyone with its quick morning rally, right into the 945 watchlist level it had tested a few times. We were hoping for a breakout and a push, but alas it was not meant to be.

Good thing we make plans for both sides of the trade. If you took 930 puts on the 945 watchlist level test, they went from $9-$10 to a high of $28 when it reached our 905 watchlist level.