5/28 Recap

We continue to tread water above the 8 ema on the SPY, more concerning today is the 3rd biggest component in the market, NVDA, is going nuts again up over 6%, Apple was up big early on a surprise on Chinese Iphone shipments and even so the market can barely catch a bid. It remains a bullish flag, but the weakening MACD is concerning to me.

Speaking of NVDA, this might be the greatest 2 day move in market history, it gained over $100B on back to back to days? Has that even happened before? I’m going to say it probably has not. There is alot of FOMO from people right now in this name which is hilarious because the story was the same in January at $500. We all knew it was sold out for a long time and not much has changed. NVDA is a wonderful company, it just went 10x off the November 2022 lows and is now closing in on Apple for the 2nd most valuable company slot.

The dollar looks terrible, it just broke down from a little bearish flag and looks like a clear head and shoulders wanting lower. If this does breakdown it is a tailwind for equities and other things like Bitcoin, Gold,etc.

Recent Trades

CORT - up 23% today premarket tapering off to 18% now. On 5/2 I wrote the below on how insane it was to see a sizable risk reversal placed on a biotech. I mean no offense to anyone working here or long this, i know nothing about it, but the reality is most small cap biotechs are indeed junk that eventually have their day where they have a -80% move lower. That is why this trade was so nuts, for someone to sell puts on $2.5B biotech, they’re crazy and they used the proceeds to buy calls, god bless. Well the trade worked, beautifully with the call spread they bought being 27/32 and the stock being at 33 this morning, well before the June expiry. Finding trades like this are what this substack is all about.

Trends

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Today’s Unusual Options Activity

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