It was quite a roller coaster yesterday as the market recovered triple digit loses in the last hour of the day, the biggest swing in 7 months. I keep thinking SPY needed to hit $142 for a bounce, and we almost had it yesterday. Well looks like we will open below that today after another earning miss, this one from Dupont. Futures are deep in the red for the first time in recent memory. Concerns about Spain and Italy bond yields rising, coupled with the poor U.S. earnings so far, and the debate last night disappointing Romney supporters have sparked this fade. We shall see if we can hold this area or is this the start of a prolonged correction? Time will tell, but $142 is the line in the sand for me short term here.
We had some decent plays yesterday. OPEN was on the watchlist but ramped higher at the open, and the calls ran from us. NFLX did explode out of the gate and the NOV 90 calls ran from .40 to .93(we were the first on the planet to get those at the LOD). WDC and CALL calls were the losers, with WDC reporting great earnings but issuing an outlook that missed expectations.
We had some nice earning reports this morning and we will be looking at FB, NFLX, PNRA, and BWLD at the close. WHR and COH reported some nice earnings this morning and maybe worth a look at some calls. I am currently holding the NFLX NOV 90 and 100 calls and will look to close most of them (or some of them) before the close.
Options I am looking at today:
|Stock||Call/Put||Strike||Expiration||Closing Price||Entry Price|
|SODA||Call||$45||NOV||.35 x .40||0.40|
Looking to play NOV calls on COH and WHR. I will wait till possibly mid-day on SODA - I will have a blog writeup on that one so hang tight. Love WYNN for earnings, nothing is certain but folks in the 120s yesterday may get a bump on the premiums after the company issued the earnings date, which is tomorrow after the bell.
I still like NFLX, and i am one of the few that do. They need to beat expectations around sub growth or the stock will tumble another 20%. If they beat, it will run 20%. Should be volatile.
Lets have a great day, hopefully the market finds support here and melts higher the rest of the day. One last article posted by harley in the chat and figure i would share: http://www.nanex.net/aqck2/3635.html Just shows the manipulation in the market and the sort of thing that I think will eventually be our black swan event.