12/6 Recap

It’s early but if this candle closes anything near where it is now, we’re looking at a gravestone forming which would be a short term topping candle. The reason its called that is because it traded to the highs of the candle and has now trade to the lows and closes there. Again we have not closed there but at this moment that’s what it would be if the market closed right now. Sending these recaps out mid day I can’t tell you how this will look in 3 hours but a small cooldown would be healthy at this point. We remain in a very clean uptrend and have not touched the 8 ema in 11 sessions. Afterhours we have the names that will be included in the S&P so you’re doing to see some big moves on the names added. Some of the popular contenders off the top of my head are SQ,COIN,APP,APO,TTD,DDOG,VRT, LNG,CVNA. The ones that don’t get in could see nasty moves down if you’re in any be aware of that.

Recent Trades

META - Last weekend’s best idea Meta here had a monster move this week going from 575 on friday to 630 today. A 10% move without earnings on a name this size is not a common event. The whole market was strong but META really led the way after the meeting with Trump last week. The put spreads I drew up for December are near max gain now, you can close those up and if you took this risk reversal below, you’re up a ton as the $500 short puts went from $60 to $50 and the $800 calls went from $65 to $89. Of course I think there’s more to go but if you’re up 35% in a week on leaps, cashing them in is not a bad idea, leaps don’t really move like that. If you’d like you can sell upside calls vs your long call like META Jan 2027 1150 calls for $31 and get a huge chunk of your original $65 basis back and now be in $800/1150 call spreads for a cost of $34 with a max gain of $350 by 2027. Just something to ponder.

Today’s Unusual Options Activity

Here is today’s link to the database, as always it will be open until monday morning and the rest of today’s trades will be added by the afternoon.