To The Moon

Despite yesterday's decline, I still maintain my view that the market is in a mild correction. The reason is that I don't see many big put orders. At present, the whole is still dominated by sell calls, and the sell call market is mainly dominated by sideways. It seems that the bears were scared in the first half of the year, and now they dare not show their faces easily.

Look at the news recently some media began to worry about the stability of the US banking system, and then luckily yesterday there was such a big order:

sell $XLF 20250117 31.0 PUT$

buy $XLF 20250117 25.0 PUT$

Wall Street is again taking the pressure off the Fed.

The XLF is also pulling back with the broader market recently, closing at 32.67 yesterday. If some friends feel that technology stocks are overvalued and have not yet pulled back, they can also consider selling put XLF at a low. The strategy also takes into account the black swan situation, so it adds a leg to buy put. You can copy the strike price, and you can choose another expiration date that suits you.

Note that this is a bull put spread strategy and a sell put does not mean the market is suitable for a buy call. While Wall Street won't be intentionally shorting, there will be some pressure on the financial sector as interest rate hikes continue.

buy $JPM 20230721 143.0 CALL$

Of course, individual stocks and industries will be distinguished, and the industry is general, but some stocks will be outstanding. On July 14, JPM disclosed financial results, and some institutions expected to be bullish on financial results. Generally speaking, the general rise of bank stocks before earnings has become a rule.

Nvidia had a lot of sell call trades last night. But these two options have a lot of traces of trading before, so it is not easy to tell whether the order was opened last night or closed at a profit. 。 $NVDA 20230915 400.0 CALL$ $NVDA 20240119 300.0 CALL$

There is nothing wrong with closing positions at this price, no one knows how long the sideways market will last, and many stocks are starting to sell call.

Take META and CRM for example:

sell $META 20230714 280.0 CALL$

sell $CRM 20230721 230.0 CALL$

Why do many institutions buy call options when they know the market is sideways? Most likely these institutions are referring to the market trend in the first half of this year.

Micron earnings this week. The company's financial statements often go off script. However, in the long term, it is a normal semiconductor cycle stock.

Options transactions list a more detailed set of coping strategies:

sell $MU 20230630 59.0 PUT$

buy $MU 20230630 64.0 PUT$

sell $MU 20230714 74.0 CALL$

It can be seen that the trader believes that Micron will fall slightly after this earnings report, and the stock price will fall to 63 this strategy can be profitable.

Finally, look at this big order: buy $U 20240216 45.0 CALL$

Compared with the potential of Apple's new vision pro product, U's stock price is low.