Markets closed higher for the 6th session in a row on Thursday, with the S&P adding .32%. Asia markets closed mostly higher overnight while Europe indexes are mixed this morning. U.S. futures are pointing to a higher open, Yields are lower while Oil, Gold, and the Dollar are higher.
And here is my rant from yesterday if you missed: https://www.optionmillionaires.com/jbs-afternoon-rant-december-14th-2023/
And here are the details on the 2K Challenge for those interested: https://www.optionmillionaires.com/the-2k-challenge-details/
What a day Thursday was. Multi-day moves can do wonders for positions, especially once they get near/at the money. Stocks continued their Fed induced rally, although paring gains from the highs of the day. As much as I think stocks could rally more into the end of the year, think a pause is in order soon - whether today or next week - before the next possible leg. Not saying I am adding puts, just think I will be patient before putting any more risk on. Today is supposedly the biggest quad-witching since 2012 with over $5 trillion in notional option value set to roll-off... always makes for great headlines. The SPY just closed above the upper Bollinger band for the 3rd session in a row. Would think we head below that in the next few days... $468.85 or so and then re-evaluate:
I had some ALGN calls I added back at the end of the November. Sure enough, ALGN starts to rally on Wednesday after the Fed meeting and then gaps and runs again yesterday. My $240 strikes went from bidless to $24 at the highs yesterday! I was happy with any profit so I locked my calls in for 1300% but missed another few thousand %. But my plan was to lock it in at the open, so I stuck with it. Having a plan removes regrets(mostly):
ISRG also gapped higher yesterday, breaking over that $330 handle. $330 was my potential target from my entry on Monday so I went and closed the last of my calls for over 600%. Will definetly be on the radar again in the coming weeks for another 5 session rally - which it seems to duplicate every so often:
Z soared again yesterday, rallying nearly 7%. I locked some of my Jan strikes in for over 900% at the open. Will look to close some more out today and then ride the rest. Think Z is on a collision course with $60+ but would not be surprised to see a pull-back at some point, so will wait before adding any more positions:
FVRR also rallied yesterday, breaking over $30 before pulling back to close at $28.90. I used the move to lock some of my Dec and Jan calls in for over 300%. FVRR is gapping again this morning so hopefully I will get the chance to exit the rest of my Dec strikes for some nice profits and hold the Jan strikes for a move into the mid-$30s:
Also locked profits in SMG, CHWY, and DOCU.
TRUP closed up over 5% yesterday and is up 20% for the week. Last night AFLAC and TRUP announced they were withdrawing their development plan for Japan. At the same time they re-confirmed their commitment to TRUP and the opportunity in North America along with their $200 million investment. I really don't think it is big news, though the short crowd will try to spin it as such. Will be closing the rest of my Dec strikes today and just hold the Jan's for now:
And lastly, I added one position... more WW calls. Just think the backdrop continues to improve for WW. It announced its new Behavior Change Program for $99 and Oprah admitted to using GLP-1 drugs. Only a matter of time before it is back over $10 and beyond. The plan was to add more once it broke that 200dma And they added Feb strikes so may look at some of those today:
SSYS and YOU had decent sessions yesterday. Will be looking to take more profits on SSYS today and may look for some later dated strikes on YOU.
TRIP rallied over 6% on an upgrade yesterday. Would love to see $20+ today. Still holding some Dec strikes so will look to close those today and just continue to hold the Jan strikes:
One of the better weeks in a while, so will likely sit on my hands today into the weekend.
And here is what I am watching: YOU, WW, BIIB, GILD, ALGN, Z, SPOT, AI, Z, ROKU, TRUP, ULTA, ISRG, ALGN, ADBE, ROKU, RBLX, TGT, FVRR, AVAV, NFLX, DIS, EXAS, AAPL SQ, WW, MA. MDB, AZO, LRCX, LULU, LLY, NVO, TWLO, AZO, ULTA, ORLY, NOW, SITE, MELI, AVGO, WIX, OKTA, CMG, QQQ, BLK and TEAM.
Let's have a great day!
-JB