Markets tumbled on Tuesday, with the S&P dropping over 1%, on jitters over the debt ceiling. Asia markets closed in the red overnight while Europe indexes are falling this morning with the DAX off 1.6% as I write this. U.S. futures are pointing to a lower open, the Dollar is in the red while Yields, Oil, and Gold are all higher.
And this is what UPB is reading this morning: https://www.optionmillionaires.com/morning-reads-262/
It was a rough session for stocks on Tuesday with reports the Debt ceiling talks stalled. Stocks fell into the afternoon closing at lows. The S&P gave back the last 3 days of gains... profit taking or the start of a bigger pull? If the U.S. hits the debt ceiling and 'defaults' the bigger pull scenario comes into play. I really don't see that happening but have to be open to the slim possibility. If the SPY starts to break that $410 handle today, I may look at some hedge put positions - likely QQQ's. If an agreement is reached by Friday, think that $420 handle is back on the SPY in a flash:
ROKU found some morning buyers and I was able to close some of my weekly and next weeks calls for nearly 100%. The stock then tumbled $3 from its highs after the noon hour. It came right up to its 200dma yesterday before falling. A break above that and the 50dma by Friday should bode well for mid-$60s next week:
I also added more TERN calls yesterday. The hype only grows for weight-loss drugs. Taking out the cash, TERN is only a $500 mil company - an easy pocket acquisition for a larger biotech name looking to get into the space. I am likely done for now adding calls. It tested $12.66 before falling with the rest of the market in the afternoon. Think $13+ comes soon and then higher in the coming weeks:
VKTX hit all-time highs at 11am, only to give it all back and then some to close down over 6%. No plans to sell any more call nor add anything just yet unless it breaks $21 or so, where I would add more strikes:
As a side-note, if you think the craze with Ozempic and other weight-loss drugs is ending, take a look at this:
Imagine the TAM for any of those markets.
What looked to be positive sessions for ZYME and EDIT turned out to be duds yesterday with both stocks giving back early gains. If there is a silver lining, it is that both stocks closed nearly flat. Still have plenty of time on these names and think $10+ breaks and holds on both in the coming days:
Still eyeing ULTA for some spec calls. Will wait to see if it can hold green this morning:
And this WING setup keeps getting better - just need to time the entry right:
And lastly, if the SPY nears that $410 handle, I will look at QQQ puts as a hedge, likely $330s or so:
And this is what I am watching today: QQQ, ULTA, WING, TERN, GLD, WW, RARE, WIX, ZYME, SPOTAXSM, SAGE, RARE, SRPT, BLK, EXAS, RARE, GLD, W, SHW, ABBV, and ALGN.
Let's have a great day!