10/8 Recap

The SPY nearly broke down late yesterday but has bounced back nicely today with a move back over the 8 ema. We got a huge move down overnight in China, like Covid crash type move and alot of money remembered that the Chinese markets are just not investable and rushed back to the safety of ours. We don’t really have any important economic data this week but again bank earnings kickoff friday. So that is our big event this week, moreso their guidance.

As for China the Hang Seng was down nearly 10% last night, it is still very high up off the levels of 2 weeks ago, look how overbought it was below, but that move overnight was eye opening. Indices don’t typically move like that, the last time ours did this was during the complete covid panic. The markets were really overbought and that’s just what happens when names move so violently in 1 direction, there needs to be a period of consolidation and it appears this may be it for China.

Recent Trades

DOCU - I highlighted this one in the 9/26 recap here. There were so many trades coming in and more came in after, I thought it could have been a buyout but it was index inclusion today that sent it up 8% today to just over $68/share right now from 62.xx back then. This took under 2 weeks to play out but we finally got our answer on why the OTM calls were coming in hard.

Today’s Unusual Options Activity

Here is today’s link to the database as always it will expire tomorrow at the open, the rest of today’s trades will be added by tonight.