Markets closed higher on Wednesday with the S&P adding .72%. Asia stock fell overnight while Europe stocks are selling off this morning with the DAX down over 2% as I write this. U.S. futures are pointing to a lower open, the Dollar, Yields, and Oil are higher while Gold is lower.
And here is the last rant if you missed: https://www.optionmillionaires.com/afternoon-rant-4-1-2026/
Stocks continued their bounce yesterday, on hopes for a resolution to the War in Iran. All signs seemed to be pointing to it... and then Trump had his address to the Nation last night. Quite honestly he didn't say anything new but that was the problem. He reiterated his previous threats of total destruction of Iran's power plants and pretty much, in my opinion, set the stage for US ground troops. Pending any last minute cease fire or deal, I have this odd feeling the US will try and take that Kharg island in the coming days. If that happens, SPY will likely be sub $600. I think the first few hours of trading today will be key. If markets can find some support and bounce, maybe it can start pricing in an end to this conflict. If not, I will be skewed for downside and looking to enter later dated puts/hedges likely in financials and SQQQ calls. Watching $637 and $633 for support if buyers fail to show up today:
And to put it in context, The SPY hasn't been below $600 since June:
I made a few trades yesterday and thankfully didn't add much risk outside of lotto RBLX calls. My one regret this week was not adding spec calls on RBLX and RDDT on Monday. I won't make the same mistake next time we get near a bottom(hopefully soon).
ORCL opened in the green yesterday and I was looking for continuation from its Tuesday rally. Instead, ORCL stumbled. I didn't want to see my position turn south so closed the last of the calls for a 60%+ gain. Obviously not the gain I was looking for when I entered, but better than watching that go to zero. Not sure I will revisit just yet though the low $140s have been holding for ORCL:
I finally entered TSLA calls with the stock trading around $377 after bouncing when it dropped at the open. It came up to test $383 but seemed to struggle. I didn't want to see the position turn red so closed the calls out for a small gain. Sure enough premiums came into the calls as the day went on despite the stock trading mostly rangebound and closed up over 70% from my entry.. I would assume the premiums went up on the possibility delivery numbers would be out this morning. Either way, the stock is gapping down with the market so thankful to have taken the position off. Will continue to watch TSLA for more upside opportunities:
TTD opened flat and looked like buyers disappeared. I didn't want to see my position go completely south so I went and closed the calls out for a small loss. Will continue to keep on watch for a bounce. Many need to test $20 first:
CRBP rallied another 6% yesterday and received a $1 PT lift from Mizuho this morning who raised their target on the stock to $40 from $39. Mind you the stock closed at $9.98 yesterday. Still holding my freebie calls and watching May strikes:
GLW tested its 50dma on Monday and then was off to the races Tuesday. I almost added some $160 calls yesterday but thankfully sat on my hands as it is gapping down this morning. Will be patient:
If the market shows no signs of a bottom today I will look for some hedges/puts into next week. Likely SQQQ calls and/or puts on financials like JPM, WFC , and C. And may look at lottos on both sides today in names like LRCX, ASML, AVGO, and RDDT.
And here is what I am watching today: GLW, RBLX, U, RDDT, LRCX , ASML,ORCL, U, TTD, GLW, AAOI, KODK, TSLA, ALMU, VKTX, RH, RDDT, ROKU, RBLX, SEDG, KODK, NKLR, SEDG, AAOI, DUOL, GLW, ALGN, ISRG, LMND, CF, NTR, IPI. SERV, SHOP, ANET, HTFL, ROKU, POOL. V, MA, ZM, WING, SHOP, SQQQ, MRNA, DUST, FLWS, COCO, COIN, KODK, and SQQQ.
Let's have a great day!
-JB