Markets closed mixed on Tuesday, with the S&P finishing the day up .08%. Asia markets soared overnight with the Nikkei adding over 5% while Europe indexes are also in rally mode with the DAX up over 4% as I write this. U.S. futures are pointing to a 2.6% higher open, the Dollar, Oil, and Yields are lower while Gold is higher.
And here is the last rant if you missed: https://www.optionmillionaires.com/afternoon-rant-4-7-2026/
Stocks opened in the red yesterday and then tumbled to lows by 11am, with the Nasdaq trading down over 1% and markets finally starting to feel like it may be getting ready for an escalation of events in the Middle East. Stocks found afternoon buyers and the S&P was able to finish slightly in the green and higher for the 5th day in a row.
Everyone was patiently waiting for the 8pm deadline Trump had set for Iran to open up the Strait of Hormuz. Sure enough, after 6:30 pm a 2 week cease-fire was announced. Oil tumbled and futures soared. We are by no means done with the headline driven market unfortunately, but at least one of the worst case scenarios is off the table and we do enter a point of no return with runaway Oil prices, yields, and inflation. Now where do we go from here?
Higher premiums and the fact that one headline could cause a 1-2% market swing had made finding decent risk/reward strikes difficult lately. Lower premiums should help alleviate that today. The issue now is the large gap. Will wait for the dust to settle at the open, likely 20-30 minutes.
Speaking of minutes, we get the Fed minutes at 2pm, PCE data tomorrow, and CPI data on Friday.
I sat on my hands yesterday. I was eyeing AVGO calls and almost added some $345s, but then realized the calls I was looking at was April 8th so I passed. I was also watching ANET for a possible entry but the $140 strikes were the only ones that looked half-way decent on a risk/reward basis but with the binary event coming in the evening, couldn't rationalize adding any. Of course in hindsight both would have paid nice this morning, but who knew with 100% certainty? Either way, will be watching both again today for possible call opportunities although AVGO got downgraded by some boutique analyst this morning Seaport Global to Neutral From Buy. Figure $360 for AVGO now and $145+ for ANET:
KODK is gapping higher this morning with the market. I was eyeing later dated strikes. May $17.50 and June $20s look interesting. If it breaks $12 and holds in the morning, may nibble some spec calls:
Of course the GLW calls I had from Monday will be up a few hundred percent today. Not going to chase but will be eyeing some far OTM strikes, likely May $210s/220s. Will make it easier to ride out the bumps on the move over $200:
HIMS on watch again today. I couldn't pull the trigger yesterday on weakness but today looks like a new day. It holds $20 after the dust settles in the morning, may add some Apr 17th strikes... likely $22 or $23 calls:
And same with FUBO. Didn't chase the open and thankful I didn't as it closed over $1 off its highs. If it holds $13, I may look to add some spec $15 or $16 calls for a potential move to $20+:
And as always, still watching RDDT and RBLX:
$147 the big spot for RDDT:
So much blue-sky on RBLX:
And here is what I am watching today: AVGO, ANET, HIMS, KODK, RDDT, RBLX, WING, GLW, U, RDDT, LRCX , ASML,ORCL, U, TTD, GLW, AAOI, TSLA, ALMU, VKTX, RH, 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