July 27th, 2023 Watch List

Markets closed mixed on Thursday, with the S&P and Nasdaq closing slightly in the red while the Dow notched its 13th straight day of green. Asia markets closed mostly higher overnight while Europe indexes are rallying this morning. U.S. futures are pointing to a higher open, the Dollar is lower while Yields, Oil, and Gold are all higher.

It was a bumpy session on Wednesday heading into the Fed decision and press conference. After the Fed announced a .25% rate hike with similar verbiage from the previous meetings statement, stocks rallied only to come under pressure after Powell started speaking and laying out a scenario of another hike before the year us out. Despite that, the probability of another hike this year went down. Then came META earnings after the close, that easily bested estimates, sending the stock soaring. This morning we get the first read on 2Q GDP and then PCE data tomorrow. Pending any surprises, looks like the SPY will be testing $460 soon:

It was a great day for WW, rallying over 16% on an MS upgrade and closing at levels not seen since Feb 2022. I added some Jan 2024 strikes and used the move to lock some of my Oct calls in for nearly 300%. The more research/digging I do on WW, the more I think it will squeeze into the $20s and beyond in the coming months.

I'll try to have a detailed post up with my thoughts in the coming days. The stock is now up 40% this week. Would be a great sign here if it can hold its gains into the weekend:

It was a big day for TNDM yesterday, breaking that $35 handle with authority to close up over 8%. I used the move to close more of my calls out for over 300%. I will likely look to hold the rest into earnings next week. Think this is $40+ soon:

I also locked some of my CVGW calls in for over 100%. Still like this one for a move over $40 soon but did not want to lose profits:

ALGN reported a great quarter after the close yesterday and the stock is soaring, nearing the $400 handle. The $400 calls, $60 out of the money with 2 days left till expiry, were 1.60 x 2. Not the type of risk reward I like so I passed on the calls. They will likely open up a 5x bagger or so. Not going to chase but do think it will trade north of $400 into Friday.

CMG reported a decent Q but missed slightly on revenues and said costs will weigh on margins in the next few quarters. The stock is down nearly $170 in the pre-market. It may bounce to $1950 or so but will likely wait for the dust to settle to trade again.

I missed the bounce on SPOT yesterday despite posting it on the watchlist. The stock recouped 6% of its previous days losses and likely will trade in the mid-high $150s by tomorrow. May look at spec calls again to play for a bounce:

Maybe the bottom is finally fun for YOU. Not one to average down so will likely just hold my calls into next Wednesdays earnings and revisit:

DOCU, a name I haven't traded in a while, is back on the radar. The 50dma is right there at $53.25. If that breaks I may look for some August strikes to play for a move north of $60 in the coming weeks:

And lastly, INMD reported a great Q this morning,. Could be a rally play at the open. May look at some spec calls.

And this is what I am watching today: INDM, SPOT, DOCU, WW, SHW, BIDU, ALGN, ISRG, YOU, FVRR, ANET, ULTA, SSYS, ROKU,  BLK, TNDM, Z, ANET, IBM, NFLX, QQQ, AXSM, and SAGE.

Let's have a great day!


JimmyBob (Scott)has been trading equities for over 15 years, a majority of which were OTC micro-cap stocks. He started trading high risk stock options over the past 7 years, and has proven winning trades in excess of 15,000%.

As one of the Co-Founders of optionmillionaires.com, Scott enjoys sharing his knowledge with other investors through timely blog posts, daily watch lists in the forum, weekly webinars, and helpful advice within the chatroom.

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