Markets closed lower to start the week, with the S&P finishing Monday down .31%. Asia markets closed mostly higher overnight while Europe indexes are in the green this morning. U.S. futures are pointing to a higher open, the Dollar and Yields are lower while Oil and Gold are higher.
And here is my rant from yesterday if you missed: https://www.optionmillionaires.com/jb-afternoon-rant-march-25-2025/
And this is what UPB is reading this morning: https://www.optionmillionaires.com/morning-reads-429/
Markets opened lower yesterday and then chopped around the rest of the session in an extremely right trading range - the SPY traded in a .2% range. There are now 3 trading days left before the end of the 1st Q, so expecting more of the same chop action we had yesterday for today. $522.39 is now the upper-bollinger band on the SPY so could be some resistance today:
CGC gapped all the way past $9 in the pre-market yesterday, then gave all those gains back to open flat. It then melted lower for the rest of the day to close down nearly 20%. A big downside move unless you consider its 140%+ rally last week. I did not want to lose the profits on my $8 calls so I sold the rest after the open for over 700%. Still holding some freebie $10 calls. I may actually look to add some later dated strikes if the stock finds footing today. Still think double-digits is coming here:
I also keep mentioning IIPR on my rants. The April $110s look interesting on a risk/reward basis so may look to add some strikes today for the move into the $110-115 area in the coming days. Love the IIPR story:
VKTX finally released their 4 week phase 1 Oral data and it came in better than expected with a 3.3% mean loss with 57% losing at least 5%. NVO gained $30 bil in market cap on its 12 week PH1 oral data. Would think VKTX's data is better, with less adverse effects if it was run for 12 weeks. They announced they are doing a longer study along with moving into PH2 sometime later this year. I am surprised the stock is not trading into the $100s. Likely some premium loss on there higher calls. I may look for some strikes now into the summer if premiums come down enough:
And VKTX data should bode well for TERN today:
CDLX soared 27% yesterday on no news to speak of. I used the move to lock most of my $20 calls in for 100% and 300% and also added $22.50 calls which I also locked some in for over 300%. Sure enough this morning CDLX announced a $150 mil convertible debt offering and the stock is getting pummeled in the pre-market. Not a good look to raise cash twice in a weeks time... almost looks like the company is being reactionary instead of having a plan, Either way, in the filing the company cites there maybe some type of forced buying as those holding the 2025 notes close hedge positions:
https://x.com/OMillionaires/status/1772584867231846481?s=20
https://x.com/OMillionaires/status/1772592579919364417?s=20
The last of my calls will take a hit at the open, but I do still love the story. I was eyeing May $30s yesterday. I may look to add more later dated calls today once it finds support... hopefully around $17:
I also entered some DWAC calls yesterday ahead of its ticker change to DJT. FOMO the MOMO I always say and this has all the ingredients of a momo play. Premiums were holding up yesterday so I went and added some higher strikes. The stock is gapping here in the pre-market. Will look to take some of my calls off for 100%, when I get the chance, and hold the rest for a possible continuation of the squeeze:
A solid day for PYPL on the heels of a rough end to last week. Just a matter of time before this is over $70:
BofA added SPOT to their focus list this morning and removed NFLX. A day late and a dollar short for me adding SPOT calls. It is gapping higher this morning. Not sure I will chase here but will continue to watch for a possible entry for its move to $290+ in the coming weeks:
And lastly, DELL, one of my old favorites from a few years back, has consolidated since its earnings gap. It trades less than 1x's revenues and the AI boom will only continue its prospects of growth. Will be eying some calls for that possible revisit of that earnings highs tap of $131 in the next week or two:
And lastly, don't forget that markets are closed Friday.
And this is what I am watching today: VKTX, CDLX, DELL, SPOT, LRCX, GPCR, NFLX, NOW, LULU, PYPL TERN, ALT, RDDT, IWM, ADBE, CMG, and MDB.
Let's have a great day!
-JB