Welcome to the market recap for Monday February 26. The plan for members is below in the paid section so let’s get started.
Reminder: Webinar Thursday Night Here.
The S&P500 today was as slow as it gets with light order-flow on a non-news driven day, so the rest of the market was quiet. Tomorrow, we have some data that likely shakes this up.
I don’t like grind/chop tape at all and would rather wait for technical inflections to fire off so that I can capture vol and reading those with price and my model is how I do it but you need news to help drive the price action.
If we stay below $5100-$5105 we can roll over tomorrow morning but $5070-$5075 is a spot to watch and overall price is fairly balanced here across the deck - in my view.
No moves for me on the short-duration stuff just yet aside from one short that I got into here into close and talked about in DeltaOne.
HIMS - This was a name that I owned pre-earnings last quarter with mainly the equity, trimmed some then sold after to secure the gains then added LEAPs on it and kept adding as we climbed and glad I did. They just absolutely destroyed earnings here post-market, and this is going to turn into a really good position for those who followed. Their report last November was greater than expected and with that got me paying attention even more given the issues they had prior. With this after-hours move that’s almost a 90% move since last earnings and these LEAPs are going to print.
From the CEO -
If you were long this you owe me a Chilis gift card.
I put out an update for members in the AST Portfolio today - if you missed that make sure you read it because there are some notes.
AMZN - This was added to the Dow Jones today and is near ATH, I talked about it in the report yesterday but a few notes here. This stock is a crowded long and if we reverse here tomorrow, I am going to short this with ITM puts in size into next week expecting $160-$165 to print. I need $173/2 to break on this first so just a heads up.
Energy Stocks —— They are still strong so hard to ignore them even though they move slow in relation to other names which is why trade structure matters so much, at least to me. Speaking of structure this Thursday night I am going to cover DITM options and how Aunt Nancy uses them as stock replacement.
I am long ET 0.00%↑ still with equity and a few other names I can’t share here!
In The Premium Video Tonight I Cover:
S&P500/Nasdaq/Oil Analysis
Quick notes from the Report yesterday
A trade idea on SMCI 0.00%↑ that I have
Breaking down HIMS Earnings and The Top-Down Approach
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