To The Moon

In keeping with the old "sell in May" tradition, May is the month to find some reason to sell. This year, you don't have to look for a reason. Treasury bonds, inflation, interest rate hikes and recession are all big, scary names, and anyone who pulls them knows that May is a bad month to own. After all, these topics have been played out in the media for a long time.

So let's pick a few typical growth stocks and see how institutions are holding positions.

sell $PLTR 20230512 7.5 PUT$

From Tiger pc

sell $CVNA 20230519 10.0 PUT$

sell $ABNB 20230616 125.0 PUT$

We agreed to sell in may. How did it become sell put in may??

It seems that all sides in the market prefer to sit tight for now. But think about it. No matter which sector collapses, it will be smaller banks that suffer. The SEC chairman's statement in yesterday's article did not refer specifically to banks, but to dealing with any form of misconduct that could threaten investors or the markets.

"As I’ve said, in times of increased volatility and uncertainty, the SEC is particularly focused on identifying and prosecuting any form of misconduct that might threaten investors, capital formation, or the markets more broadly”

It looks like the organization is a wimp.

The result of artificially low volatility is an option seller's market, and tech leaders are not far behind:

• sell $MSFT 20230616 310.0 CALL$

• buy $MSFT 20230915 345.0 CALL$

Traders don't think Microsoft can break 310 by June 16th, so sell 310 call. But also bullish on Microsoft long-term growth, buy September expiration 345 call.

sell $MSFT 20230915 300.0 PUT$

Traders see value in the Microsoft 300, or they don't see it falling below 300 until September.

Both strategies are good deals.