Markets rallied again on Tuesday, with the S&P adding .94%. Asia stocks closed higher overnight while Europe indexes are mostly in the green this morning. U.S. futures are pointing to a another green session, the Dollar, Yields, and Gold are higher while Oil is lower.
And here is the last rant if you missed: https://www.optionmillionaires.com/afternoon-rant-11-25-2025/
Markets opened flat yesterday but immediately came under pressure with the Nasdaq leading the charge... well more specifically NVDA. You can also add Bitcoin to the mix. Continuation of the supposed AI bubble busting? Not today... well not yesterday. Stocks found footing at 10am and the rest is history, with stocks rallying into the afternoon and closing near the highs of the session. After yesterday's rally the S&P is now up 3.47% since Friday. To me it is a very good sign that the market could withstand a gut punch... ie. NVDA tumbling. Funny how everyone was digging googles grave at the start of the year and now are saying how google could finally be the one to put the brakes on the NVDA story. Nice chart here of the performance of the two and counterparts that move with them:
Still not 100% convicted that sell-off in AI is done, but think this week and likely the next, should offer some nice opportunities to the upside. After the close yesterday DELL reported a monster beat and raise.
The SPY is now back over its 50dma. With that hurdle cleared $679 is the next area of resistance:
And Yields right at that key 4% level... finally:
Wow. What a day. This time it was RDDT finally breaking out of its post earnings rut to rally over 12%. My calls, which were red on Monday even with the stock closing up nearly 6%, paid. I used the move to close most of the calls out for 300%, 400% and nearly 900%. I also went and added some strikes into next week and by mid-day I was able to close some of those out for 100% and 200%. By the end of the day, the last of my $215 calls were up nearly 2,000%. RDDT is gapping a bit lower here in the pre-market. I will probably look to close the last of my weekly calls out after the open and likely just continue to hold the $235s for next week. That is, unless it shows signs this is just the start of an epic reversal back to all-time highs. The sign for me would be a break of $225. If/when that happens, I will add some FOMO calls, likely $280+ strikes:
POOL rallied 3%... and it begins. I this is the start of the pincher reversal, $30-45+ is coming:
And while we are on the topic of pinchers, I present to you MSTR:
Premiums are expensive, ie. the $185 weekly strikes which are $15 out of the money are $1. So very tough to play on a risk/reward basis. But if premiums come out, may look to nibble some lotto calls.
Today maybe the day I finally add more SERV calls if it holds $9.75 in the morning:
And of course LMND, which could be breaking out of its bull flag:
And take a look at ALGN showing you exactly why you see me talking about adding lotto calls when no-one else is talking about it. Will continue to watch for opportunities:
And lastly, DELL will likely be volatile out of the gate today. May eye some lotto calls and/or strikes into next week to play for a move north of $140.
And here is what I am watching today: SERV, LMND, RDDT, ALGN, POOL, AVGO, RH, ROKU, RDDT, ORCL, AVGO, INTU, SNDK, WMT, HD, ZS, ROKU, TERN, and SQQQ.
Rock and roll,
-JB