Markets fell on Tuesday, giving back some of Monday's gains, with the S&P dropping .42%. Asia markets closed mixed overnight while Europe indexes are rallying this morning. U.S. futures are pointing to a higher open as I write this, the Dollar, Yields, and Oil are higher while Gold is lower.
It was another rough session for stocks, resuming its performance from last weeks 4 session losing streak, after Moody's downgraded credit ratings on 10 banks coupled with weak data out of China. Today, stocks are trying to find some footing ahead of DIS earnings after the close and CPI data tomorrow morning. The SPY was flirting with that $450 handle this morning, would want to see a close above that today or the odds start increasing of a 50dma test in the coming sessions and a move to $440(and possibly below). Not one to put a bear suit on just yet but I am becoming more open to adding some hedge positions... likely short-dated TZA/FAZ calls:
I added some TLRY calls yesterday. I know some will say why not just buy common when a stock is sub $5 - I trade options for the risk/reward and leverage. TLRY acquired 8 brands from BUD yesterday for $85 million. I think this is a huge deal for TLRY. It puts their name on the map and gives it relevance. It can now use the acquisitions to help scale out their lines when all the regulation on cannabis goes thru. It also helps with revenues/profits short and long-term:
Call me crazy, but I can see it going to $5 and beyond in the coming weeks. May look to add some later dated strikes today if it can hold $3:
Longer-dated:
WW rallied over 12% yesterday after monster earnings from LLY and data from a landmark NVO study that showed GLP-1 drugs reduce cardiovascular events by at least 20%. All of this just shows how GLP-1 is not going away anytime soon... if anything, it will become even more prominent in the years to come. Would have liked to see WW closed over that $10 handle. Hopefully it can recoup that level today or tomorrow and never look back. Still eyeing some more strikes but will likely wait for that $10 break:
TWLO reported a mixed bag of earnings yesterday. They bested estimates, raised FY revenue guidance, but then issued lower than expected Q3 revenue guidance. If that Q3 guidance was inline, think the stock would be up near $70 in the pre-market. Will need a big move for my calls to come back to life and will likely wait for the dust to settle before revisiting:
OLED closed off 2.45% yesterday, giving back some of Monday's gains. The stock fell on little volume in the morning, breaking under $160, before finding some bids in the afternoon to close at $160.56. Still think this heads over $170 soon and possibly $180 in the next week or two:
AXSM recouped some of Monday's losses. Think this trades up above $80 in the coming days. May look at some strikes into next week, likely the $77s or $78s and/or possibly some Sept strikes:
RBLX reported earnings this morning that missed estimates. Thankfully passed on adding anything into the report.
CELH and AXON both reported monster Q's after the close yesterday and are gapping this morning. May look at some lottos for continuation today on both.
ULTA almost looks ready here, still eyeing some calls to encompass earnings at the end of the month:
ALGN has closed lower for 8 straight session since its earnings report. DOn't think a gap fill is coming to $340. It it shows signs of bouncing today or tomorrow, will look for some calls to play for a move back to $370+:
And this is what I am watching today: ULTA, ALGN, CELH, AXON,. AXSM, WW, TLRY, TZA, FAZ, VKTX, AXSM, WW,, CMG, SPOT, TEAM, ROKU, OSTK, SHW, BIDU, ISRG, ANET, SSYS, BLK, IBM, and NFLX.
Let's have a great day!
-JB