Stocks closed higher on Wednesday, with the S&P adding .28%, reversing morning losses. Asia markets closed higher overnight while Europe indexes are in the green this morning. U.S. futures are pointing to a lower open, the Dollar and Yields are lower while Oil and Gold are higher.
And this is what UPB is reading this morning: https://www.optionmillionaires.com/morning-reads-201/
Markets were able to reverse openings losses and close higher on Wednesday, despite retail sales numbers coming in well above expectations. At some point good news will be good for markets. Maybe yesterdays data is the start of this trend. This morning markets will be tested again as the PPI number came in hotter than expected. The market is the best forward looking mechanism on the planet, by the time inflation reverses the market will have already priced it in. Still think this $420 handle is coming into play on the SPY with that $410 handle being support(tested 409.47 yesterday):
VKTX rallied yesterday, closing up over 3%. The last of my February calls expire Friday so I closed them out for 75% and went and added March strikes. Minutes after I entered them it seemed like algos/bots came in with over 1000 contracts hitting the ask and there was over 5k calls traded vs. only 400 puts... hopefully a good sign. Love the VKTX story and think it trades north of $15 in the coming weeks:
I locked in most of my ROKU calls yesterday ahead of their earnings for 100% & 200% on the weeklies and 100% on the March strikes. I did not want to hold onto too much risk into earnings and wanted to lock in profits. ROKU reported a great quarter after the close, showing traction in sub adds and viewership. Will look to close the last of my weekly calls out at the open and hold my March strikes for a possible move into the $80s in the coming days:
AI closed up another 9% yesterday and my strikes for next week are up 100%. It is gapping lower this morning in sympathy with the market. Will likely hold the calls into next week as along as the stock holds $24 and may actually look for some more later strikes to play for a move into the $30s and possibly higher in the coming weeks:
As mentioned on yesterdays watchlist, I was eyeing TWLO calls into earnings. The premiums were insane with strikes $10 out-of-the-money, with 2 days till expiration, going for $1.70. Not the type of risk/reward I like. Sure enough, the company posted decent earnings and cost cutting measures and it is gapping this morning. If it comes down to $71-72 I may actually look to add some calls to play for a move over $80 in the coming days. Ironically, despite the gap higher, most of the calls will likely open red:
It was a great session for RBLX and U yesterday with RBLX closing up over 26% while U closed up over 7%. Will need some continuation for my RBLX calls to come back to life and I may actually look to add some later strikes on strength... ie. if it breaks back over $45. Ditto for U and may look at some March strikes:
U:
And RBLX:
TRIP reported great earnings after the bell Tuesday but then embarked on its traditional fade. Will likely need some type of catalyst for my March strikes to come back to life... like an upgrade or buyout rumor - disappointing to say the least:
Lastly, SMG is back on radar. Its received an upgrade this morning and think it can trade north of $90 in the coming weeks:
Here is what I am watching today: SMG, EXAS, TWLO, VKTX, TRIP, RBLX, SPOT, NFLX, AYX. CMG, AI, YEXT, ROKU, GILD, CDLX, SAM, IBM, SQ, ZYME, ICPT, U, MASI, ALGN, and GNRC
Let's have a great day!
-JB