tl;dr: There are signs of long capitulation in GME options this week.News segment first: The Bond King Bill Gross loudly proclaimed that the best trade in GME right now is to short the 400% option implied volatility.According to Bloomberg, Gross's strategy was to sell GME option straddles, simultaneously selling the 40 strike calls and puts. If GME closes between $18-62 on Friday, Gross profits, with max gain of $2,200 if it closes right at $40. The report noted Gross employed a similar straddlesell in AMC, selling the 10 strike straddle.While the news details sound plausible, I couldn't find any direct confirmation from Gross himself on these specific trades. He only mentioned shorting volatility in general, not for any particular underlier. Moreover, my scans showed the largest GME 40 st

Missed the GME frenzy? No need to panic, there are plenty of stable money-making opportunities this week.Despite being monthly options expiration, the overall tech market is exhibiting the same lackluster choppy action as last week - presenting excellent opportunities to sell puts or covered calls. Why not harvest some premium during these rangebound periods?Of course, some may want to go all-in on meme stocks like GME and AMC. No issues there - at this pivotal juncture, any risk warnings pale in comparison to the potential upside. I'll provide an update on GME and AMC option positioning in the next post.Nvidia (NVDA)Nvidia is likely to remain rangebound between $850-920 this week. Consider selling the $NVDA 20240517 850 PUT$ <

Yesterday Biden expressed confidence that he would show results in fighting inflation. I thought CPI had to fall to the 5.xx%. As a result, CPI in February was unchanged as expected at 6.0 percent and core was also unchanged at 5.5 percent. Month-on-month, it was slightly higher, at 0.5%.There is a long way to go in the fight against inflation, and a quarter-point rise cannot be missed.$Financial Select Sector SPDR Fund(XLF)$ Source of titleclosed $XLF 20230616 32.0 PUT$ $XLF 20230616 32.0 PUT$ ​roll $XLF 20230616 28.0 PUT$

The time to sell puts has arrived. $NVIDIA Corp(NVDA)$ caught me off guard. I saw the stock price take off yesterday and thought it was just Dell carrying it higher, not a big deal. Today someone reminded me NVDA has earnings next week - I had the report date wrongly marked as the 31st. Time to sell some at-the-money options to take a breather, like the $NVDA 20240524 950 PUT$ . The $NVDL 20240524 43 PUT$  is also an option.Not sure if it rallies through earnings, but the run-up into the print is likely underway, along with other semis like AMD, SMCI, TSM etc. Strategies can include buying stock or selling puts. Not

GameStop (GME)On Monday, GME options ranked #9 in total trading volume across all stocks/ETFs with 689k contracts traded, up 74%. Notably, while call open interest grew just 8.4%, put OI spiked 84.3%!The trading data suggests Monday's premarket pop was driven by the underlying stock, as call options traded very cautiously - clearly failing to meet market makers' expectations. While put volume surged, there wasn't major initiation from a strike perspective.Top 3 calls opened:$GME 20240517 34 CALL$  +17,397$GME 20240621 40 CALL$  +4,727$GME 20240524 34 CALL$  +3,379While new strikes aren't capture

Cutting straight to the chase, let's look at the top closing trades today:$GME 20240517 12 CALL$  -20,263 lots$GME 20240517 11 CALL$  -11,588 lots$GME 20240517 15 CALL$  -6,295 lotsYes, that's right - the suspected market maker positions I highlighted in my first post, those weekly 11 and 12 strikes, were closed out today. We can declare this week's upside ambitions officially over, and the field has been ceded to the bears.Looking at put open interest, strikes are concentrated heavily below $20. This needs to be viewed in context with the remaining call OI:Based on the current call OI distribut

TL;DR: The GME ringleader is exploiting the monthly options expiration again to engineer a gamma squeeze. Bullish this week, bearish next week.On Monday premarket, GME spiked 40% higher, and Roaring Kitty, the instigator of GME's 2021 frenzy, resurfaced after 3 years with a meme acknowledging the surge - signaling GME's meme frenzy may be back.GME's 2021 insane rally began with a 57% spike on 1/13. The following week, it opened at $24.18 on Monday 1/25 but had run to $120.75 by that Thursday's close.However, on the ensuing Monday 2/1, GME crashed 30% before the frenzy reignited about a month later.Interestingly, this week's $25 premarket level rhymes with that $24.18 open on 1/25.The Squeeze ScriptExpect this week's script to mirror last time - a combo of expiring options gamma and short c

1 $Alcoa(AA)$ reasons for the rise similar to Macy's acquisition drive department store sector. I have been watching the trend of the metal sector since Nippon Steel announced its acquisition of $U.S. Steel(X)$ , and then I waited for this big 8000 lot CALL option order $AA 20240216 40.0 CALL$ . But as a rule of thumb, a large call order is 50-50, so I'd still go with the sell put: $AA 20240119 33.0 PUT$ 2 $Marathon Digital Holdings Inc(MARA)$ The bears have finally struck, 20,000 lots of big PUT orders

After more than a month of sideways, bulls and bears are impatient, Powell is also impatient, even said to speed up the pace of rate hikes, so the March rate hike probability of 50 basis points into 70%. ​Yesterday's article mentioned that there are two opinions in the market:Ultra-hawkish rate hike: 50 basis point rate hike probability in MarchDovish: The Fed can live with 3% if inflation doesn't fall quickly to 2%.Before yesterday, the market favored 2 more than 1.At the start of the year, the consensus was for a longer rate rise, not a higher one. There is a consensus that inflation cannot fall quickly, but there is a sense that rate rises need to be gradual and Mr Powell is unlikely to reverse his plan for gradual quarter-point increases. If inflation cannot come down quickly, the Fed'

Here's how this bizarre option strategy was discovered: $JPMorgan Chase(JPM)$ soared last week on bank earnings, but I didn't see a significant move in JPM options, which I shouldn't have. Then I checked the move in the $Financial Select Sector SPDR Fund(XLF)$ :$XLF 20230421 33.5 CALL$ Institutions placed 10, 000 lots of near-term options expiring next week on the day before the JPM's earnings report, closed the next day and doubled the price at a rough estimate. It's a list you can't find unless you keep an eye on it.It can be seen that in some significant volatility on the institutions prefer to use ETF options trading. W

mark 3 option transactions, all of which are sell call: $TQQQ 20240419 70.0 CALL$ $SOXL 20240517 50.0 CALL$ $SOXL 20240816 70.0 CALL$ TQQQ sell exercise price 70 I can understand. An out-of-the-money option on delta 0.2 equates to a monthly price move of less than 16%, and the leveraged ETF will fall faster if it moves sideways or down.The SOXL sell ATM call is a little harder to understand, though. Selling at-the-money call options on leveraged ETFs is similar to being bearish, and if chip stocks don't rise, the market has a high probability of a correction.If there are signs of a pull

I have bad news and good news about the recent pullback in the market.The bad news is that big orders have been put in and institutions have really started shorting.The good news is to put the spread bearish, but the downside is limited.Institutional short strategies have generally been less aggressive this year than last, with the exception of banks. In the strategy design belongs to the relaxed state, the price drop is the best, if the price does not fall, there is no loss. So while there's very little upside right now, there's not a lot of downside, especially in the heavily weighted tech stocks.Personally, I think we can give up small-cap stocks to some extent this year. Comparing $C3.ai, Inc.(AI)$ to $Micr

The market has been rescued by Nvidia again. Although the strong financial results, Nvidia stock prices opened higher and lower, poor performance, leading technology stocks fell. If Nvidia misses expectations, expect the market to repeat last September's post-Jackson Hole performance.But before the FOMC meeting on September 21, the market could face another free-for-all.The agency is split on Apple. The market is hedging, with bullish institutions choosing to sell ITM put options $AAPL 20230908 180.0 PUT$ and bearish institutions being more aggressive and buying OTM options directly $AAPL 20230929 145.0 PUT$ .老虎pc端The tw

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 pcsell $CVNA 20230519 10.0 PUT$sell $ABNB 20230616 12

A: Short term, these two weeksAs we all know, US stocks often pull back during Chinese holidays, which is an old tradition. However, given the current put and sell call layouts, the callbacks are fairly short. Because from the temporary large single layout, bears do not intend to be bearish for a long time, and almost earn a time value and leave.Apple:The large order I shared last week can be seen that the institutions are around the July 7 expiration date layout. After all, the non-farm data released on July 7 and the CPI released on July 12, from Powell's attitude, he particularly hopes that the market will cash in the expectation of adding 50 basis points on this day or 12th. So the bulls are understandably subdued.So the question is, what's going on with the

Apple's new vision pro was a shock beyond words, and I didn't think I'd live to see another technological revolution. It was no surprise that Apple's share price hit a new high, and then fell back. After Nvidia, Apple became the second stock to break through the pre-crash high, and a correction after the high is normal.For now, Microsoft should be the third stock to hit an all-time high. The first thing the technological revolution changes before it changes lives is the flow of money. Who would have thought this year would be... A bull market?I think that with the potential shown by vision pro, Apple is difficult to continue to pull back, may be the same as Nvidia's option language, there is a small outbreak of technology stocks in July, I guess, the follow-up to the option order verificat