11/7 Recap

Day 2 of the post election rally. The moving averages slowly curling up as we near 600 on the SPY. It’s feeling a bit euphoric but of course the market loves Trump right now. Tax cuts are a win for equities in the short term, how will has tariffs impact things, who knows, but for now we are euphoric in markets. We still fed speaking this week but this market is back to looking good, we had that little headfake for 4 days before the election but participants are happy with the election results as evident by the subsequent rally. Megacap tech is back to leading up 1.5% with the IWM almost flat. The XLY in particular is leading with Tesla and Amazon hitting highs of the year today as 50% of that etf. I think you want to sell puts lower and buy all dips off that rising 21 ema right now around 580.

Recent Trades

GNRC - Let’s discuss this one because if you’re still in it you should be wrapping it up about now. Back on 6/1 I highlighted Generac on the first day of hurricane season here at the time GNRC was just below 150 and it was a bet on a rough hurricane season which thankfully didn’t play out, but the stock still worked. GNRC is 187.45 right now and the risk reversal I drew up below would have cost you $1 out of pocket and right now at 187.45 you could close it all up for a $12+ gain. That’s a monster return for just over 5 months. Again these weekend best trade ideas are longer term trades and you have to be patient with them. If you stuck it out here, well done.

Today’s Unusual Options Flow

Here is today’s link to the database as always you will have access till tomorrow morning at the open and the rest of today’s trades will be added by the afternoon.