Markets closed higher on Wednesday, with the S&P adding .69%. Asia stocks closed mixed overnight while Europe indexes are mostly in the green this morning, U.S. futures are pointing to a slightly higher open, the Dollar, Oil, and Gold are also higher while Yields are lower.
And here is the last rant if you missed: https://www.optionmillionaires.com/afternoon-rant-11-26-2025/
Welcome to the last trading day of November and Black Friday, one of my favorite trading days of the year... Christmas Eve would be the other. Markets close at 1pm so today's action is pretty much cut in half. Today is also one filled with little in the way of analyst changes and catalysts, so stocks are set to trade on their own so to speak. The big news overnight was CME's futures market being halted due to a computer issue. Odd not to see futures trading this morning. Outside of that it is back to the AI bubble, Google/NVDA, and Burry from the big short. Not enough time to write/rant about what Burry has been saying in regards to NVDA and the bubble, if you haven't read them. But of course, like most of the perma-bears, he makes great arguments. And maybe NVDA, PLTR and the rest all come crashing down(some have already.. ie. ORCL). But even if he becomes right, timing is one of the biggest components. On the flip side he posted his 4 long trades: LULU, MOH, SLMN, and BRKR. Again, not enough time here to talk those... I used to like LULU for a bounce, and played it for some nice profits, but think that story may have lost its luster. Anyway, onto the market.
Today is usually a fun day and I may be open to doing quite a few lottos if the market cooperates. Would expect some chop here between $679 and $683.50. If sellers come in, would want to see that $679 hold or I may look to nibble some spec/hedge puts into next week:
And Yields back at that 4% level, a good sign here:
And lastly, we are heading into a historically strong performing month:
Wednesday was another great day. As outlined on the watchlist, I planned to close the last of my $215 weekly calls on RDDT at the open and that is what I did, but had to wait for the option market to open, which for some reason seems to be around 9:33 am or so. Mind boggling. Either way, I closed the last of the $215 calls out for 1,500%. At first I thought I was going to regret it with the stock breaking over $220, but then, like magic the buyers disappeared and the stock melted for the rest of the day to close down 5%. Still holding the last of my freebie calls into next week and will likely sit on my hands today:
DUOL came back on my radar on Wednesday as it started to bounce back over $180. The stock has been absolutely pummeled from its all-time highs despite the company easily beating on earnings last quarter and also raising guidance and figure a relief rally comes at some point. I started looking for weekly lotto calls but premiums were pricey so found next week strikes that looked interesting on a risk/reward basis. The stock kept rallying after my entry and I was able to close some of the calls out for nearly 100% to cover costs and then closed more at the end of the day for over 100% for some profits. I also added a few lotto higher strikes which will allow me to close the lower strikes without fear of FOMO. Call me crazy, but can see DUOL really catching fire if/when it recoups its $203.77 earnings fall level. A big day today to see if it shows some continuation:
I was watching MSTR all day on Wednesday. It is not a name I have traded since April but it always has my eye. Finally this week the chart started to pinch:
Its correlation to Bitcoin has also dropped to lows:
https://x.com/OMillionaires/status/1994065547508564097?s=20
To me this just screams opportunity. Premiums were nuts on the call side, which kept me away most of the day, but I finally added some lottos later in the day. Within an hour they were a double and I took some off to cover costs with some profits. The stock is gapping higher in the pre-market. Hard to figure where the calls will open. I may look to take the rest of the calls off at the open and then look for some strikes into next week. If this bounce continues, could see $220+ quick.
Finally started adding more SERV on Wednesday. The 200dma is 10.33. Next plan is to add some March strikes. Will likely wait until I can take some of the Dec calls for 100% first:
POOL still looking good here:
The last few Fridays have provided some monster opportunities and gains. Not sure today will be the same, with 'holiday' volume, but will be open to some lottos today if I see some opportunities.
And here is what I am watching today: MSTR, SERV, RDDT, DUOL, BIIB, LMND, ALGN, POOL, AVGO, RH, ROKU, ORCL, INTU, SNDK, WMT, HD, ZS, ROKU, TERN, and SQQQ.
Rock and roll,
-JB