Markets closed mixed on Tuesday, with the S&P squeezing out a small gain while the Dow and Nasdaq closed slightly in the red. Asia markets closed lower overnight while Europe stocks are following suit, albeit off the lows of the day. U.S. futures are pointing to a lower open, the Dollar and Yields are higher while Oil and Gold are lower.
And this is what UPB is reading this morning: https://www.optionmillionaires.com/morning-reads-241/
And here is my rant from yesterday if you missed it: https://www.optionmillionaires.com/jb-afternoon-rant-april-18th-2023/
It was another choppy session on Tuesday. Stocks sold off at the open, just like Monday, before finding a bid into the afternoon. This morning it seems we will get the reverse as futures are pointing to a rough open. The S&P is up .42% so far this week so looks like the weekly gains will be erased at the open. That $411 handle looks like support, so would want to see that hold today. There is no catalyst to speak of for this pull this morning outside of Yields rising and a stronger USD. Hopefully markets find some footing and the SPY can work its way back up to that $415 handle:
NFLX reported a mixed bag of earnings after the close yesterday. The stock tumbled over 10% right away before fighting its way back to near even. Likely will not trade it today and my calls will be bidless pending any crazy move. Not what I was planning but comes with the territory when trying to play a position into earnings. ROKU could be a nice sympathy play if NFLX finds any footing and goes red to green after the open. $68 or so could be possible so will be watching:
CDLX rallied nearly 5% yesterday and closed right at the $7 handle. A key session today... if it can hold the $7s think the next leg to $9+ comes quick:
Make it 8 straight sessions of gains for VKTX. Already locked some May strikes in for 200%+ to cover costs and will look to close some of my June strikes to cover costs once they are over 100% and ride the rest. Think it is only a matter of time before it is $25... then $30+ ect:
Kicking myself for not adding MDGL calls on Monday after posting about it on the watchlist:
The stock closed up over 12% and right near $300 - the $300 strikes were up 600%. Not going to chase but do think the MDGL news and move continues to bode well for VKTX:
IF you have listened to my rants, I have been talking about WW the last few days. The entire weight loss sector is being disrupted and stocks who are part of that change will benefit while those archaic names will not... ie. MED and other traditional weight loss names. WW's acquisition of sequence changes the game for them. They can leverage their existing member base, and likely acquire many more, as folks look for the lazy way to lose weight... or maybe I should say easy way. Either way, the future is taking pills to lose weight and WW's ability to possibly prescribe prescriptiosn to the popular weight loss drugs should be a boon for them. Analysts continue to up the possible opportunity for weight loss drugs and some have the market up to $100 billion in revenues on a yearly basis. Plenty of room for many players( ie. $VKTX ) , and would think there will be many companies looking to take advantage(ie. TDOC yesterday). Think WW can at least revisit the $12s or so in the coming weeks. May look for some inexpensive Junes strikes to play for that move:
Don't look now, but SAGE is coming back to life. Still holding April strikes so need a continuation over the next few sessions. Will look to add some later dated calls on Friday as I think SAGE is into the $50s and then $60s in the coming days and weeks:
AXSM closed at highs yesterday, up over 3%. Hopefully won't be pressured too much with the market today and work its way up to $75+. Will be looking to close some of my calls to cover costs at 100% and ride the rest:
SPOT received another PT upgrade this morning:
I may look at some $140 or so weekly spec calls if the market finds footing and the SPY holds $411 in the morning. SPOT has been churning in a tight range and one of these analyst upgrades will be the catalyst for a 10%+ multi-day move:
Likely will be keeping things small again today, as this chop can kill premiums. And lastly, TSLA reports after the close. Will be interesting to see how it reacts after these recent price cuts...ect.
And this is what I am watching today: WW, SPOT, ALGN, SAM, CMG, IBM, EDIT, MASI, BLK, POOL, SITE, VKTX, SPOT, SMG, ROKU, FAZ, EXAS, CMG, ULTA, YOU, SRS, BLK, SQ, SAGE, ICPT, U, TRIP, RBLX, SPOT, AYX, and GLD.
Let's have a great day!
-JB