Futures are pointing to a slightly higher open this morning, with S&P futures up .15% as I write this, Asia stocks closed mostly higher overnight while Europe indexes are mixed. The US dollar and Yields are higher while Gold and Oil are lower.
And here is the last rant if you missed it: https://www.optionmillionaires.com/jb-morning-rant-october-11th-2024/
The S&P enters the week at all-time highs, its 45th this year, ahead of earnings and retail sales data. Outside of that, there is not much in the way of catalysts. Today will be somewhat quiet in a holiday muted session. Tomorrow morning Bank earnings resume with BAC, C, GS, and others set to report along with UNH. Bank earnings on Friday were strong and seemed to put some wind in the sails for the markets. Will be interesting to see if NFLX can do the same on Thursday. The Vix is still over 20 and 10 year yields are still over 4% - hopefully that changes this week so I can get some more conviction on upside from here. Until that does, will remain cautious. Still a blue-sky breakout on the SPY with $575 being possible resistance on any weakness:
And finally, the small-caps outperformed. One of these times it will be the start of a breakout:
And here are the implied moves for earnings this week:
SE closed up over 3% on Friday, finally breaking over the $100 handle to test the $101s before pulling back to close at $99.29. I used the move to close more of my $100 calls in for over 400%. I also added some Oct 25th calls. Feel like the proverbial 'seal' has been broken with that $100 handle and $110+ comes soon. When I close the last of the $100 calls, will look to add more strikes into November:
I also added DELL calls. Think a move north of $130 is coming this week. It is gapping a bit here this morning. Will be quick to close some out to cover costs and ride the rest. Once I do, may start looking for some calls for a move to $140+ into November:
WW retested the $2s at the open on Friday, then preceded to melt lower for the rest of the session closing down 15% - the stock still closed the week up 119%. Over the weekend reports came out that the FDA was reconsidering its ban on the compounded version of Zepbound.
Think that bodes well for WW as it could possibly extend the length that they will be able to offer a compounded solution. WW is gapping higher in the pre-market and would not be surprised to see it back over $2 today or tomorrow. Will just continue to hold my Jan '25 and '26 calls but will be looking to lock more of my '25 calls soon:
It has been a while since I traded a Friday lotto. AMD reversed morning lows to turn green then preceded to rally to nearly $170. I added some spec lotto calls in the afternoon and was able to close some out within a half-hour for 100% and 400%. As I mentioned on Friday, would not be surprised to see AMD trade into the $170s this week. May look to add more weekly calls today for that move on strength:
YOU closed at multi-year highs on Friday and above that $34 handle. Looks like $36 is coming soon. Still looking to add some Nov strike here for that move:
Also still waiting on ROKU. That $80 handle will be key and will look for some strikes on that break. Think NFLX will report another monster Q with rosy comments on its AD base:
China held another press conference this weekend in regards to its stimulus measures, and once again, seemed to disappoint on the detail side of things. China ADR's are falling this morning along with WYNN. Still love WYNN here and will watch for a reversal today. If it finds a bid in the morning will be looking to add more strikes:
And lastly, still watching BIIB and OLED for possible entries.
And here is what I am watching today: WYNN, ROKU, AMD, YOU, BIIB, SE, WW, BIDU, V, OLED, VKTX, DELL, TERN, RDFN, MDB, NOW, LRCX, MA, CRBP, NTES, GPCR, GILD, ALGN, GS, ADBE, FAZ, ENVX, BLK, and AVGO.
Let's have a great day!
-JB