The SPY is forming an inside day over the 8 ema so far. Nothing really notable, we have the Apple event tomorrow which should be a market moving event with the weighting of Apple. Apple had a complete flop last year with their AI release and I am guessing that they’ve made the necessary changes and knock this event out of the park. If the event is a flop this market can turn lower quick and because we’ve gone mostly sideways so long we could be looking at our 3rd break of the 21 ema in 6 weeks. So not much to say really until we pass the Iphone event tomorrow.
I got some emails regarding the best idea post from the weekend. The BIDU gap up obviously changes the way that trade would be executed. The short put side of things remains the same, the name is a deep value below 90 and you want to be involved there if you can, so I wouldn’t be hesitant to sell puts there or below and I myself rolled my short puts up to 90 today as you can see below in my book 1000x. I have no control over a weekend gap up like that but that name was seeing alot of bullish flow the last couple weeks, they got a credit upgrade last night, things like that are why the calls are being bought in the first place. Someone always knows and the only place it is visible is in the options market.
My Open Book
Trades I Made Today
BABA - I closed up my June 115/200 risk reversal for a nice gain. Look I rarely buy calls, its just not my style, that’s not to say BABA won’t go higher but I was up like 30% on calls I bought 2 weeks ago, 1000 of them, I closed the whole trade because China stocks are awful and there are gaps galore below. I turned around and sold 1000 of the December 115 puts.
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