Surprisingly resilient day after one of the 7 largest companies in the market tanked. Tesla did just about everything a company could do wrong on a call and the stock is being punished severely today down nearly 12%. In the weekend earnings preview I sent out I had specifically higlighted buying puts on Tesla. I thought the numbers were bad and sure enough they pulled guidance and Morgan Stanley has them at $2 for 2024. Even now, it is a car maker trading at 90x earnings, obscene.
Tonight we have Intel reporting and that will flow through to other semis. We saw some put buying yesterday and a little more today in some names, could INTC send off some warning signs in a sector where red days are seemingly not allowed?
The SPY is holding firm above the 8 ema, we shouldn’t see much between now and when the megacaps report, that will be our moment that decides the next quarter. This remains a healthy trend for now at all time highs. When names hit all time highs, they tend to continue higher just because there is no more resistance overhead.
Oil continues the power move up over $1.50 to 76.50 in what appears to be a comeback for oil. 78 is the next big level for a reversal but if it pushes through there, oil could spoil alot of parties for the stock bulls
Recent Trades
I noted VERA on 1/8 in the recap below because I never had seen a trade in that name, put sales in a biotech, especially a small cap are just not common. It takes guts to sell puts on a name like this because it could be down 70% like countless other biotechs. The next day a player added 1500 of the $22.5/30 call spread for February. The stock wasn’t even $17. It it up 41% right now to $24.07. This was a spectacular trade for those of you that followed, well done.
Today’s Database Link
Here is today’s link, as always it expires in the morning at the market open. I recommend using this for the tables I post below, you can get a better view in the app and the rest of the days action that I log will be added by later this afternoon
Trends
1 Week
2 Week
Year To Date
Today’s Unusual Options Activity
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