The SPY wrapped up an uneventful week yesterday afternoon, we opened and closed in an incredibly tight range. As we discussed last week, this remains the most extended the weekly chart of the market has been from the 21 ema in 7 years, so a little bit of sideways action to let the moving averages catch up was always likely to happen sooner than later. Earnings for big tech start here shortly with Netflix and that is the beginning of our next move up or down, I expect earnings to be fine for everyone but how will the market take to the moderating growth the megacaps are seeing at these multiples is these question.
This weeks best idea is on a stalwart that has seen alot of bullish trades the last 2 weeks including one absolutely massive OTM call buy 50% out of the money in 2027 for around $30m. This $200b+ giant has alot of players looking for serious upside after it has no based for 6+ months. We’re going to look at the large trades placed this week and 4 different trades options for short term and longer term trades including a trade I drew up using a 1x5 ratio where you you get paid to wait and potentially hit one of the biggest gainers of your life.
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