To The Moon

Tesla and Netflix each fell 8% to become the trigger for this market correction. There is no hard damage in the earnings report, but the release time just before the index adjustment and FOMC, the market has a pullback demand. The FOMC meeting next Thursday, July 27, is likely to raise interest rates for the last time, and the dollar has rebounded after falling to a low point.

So what is the target of this pullback? Two orders caught my eye:

sell $MSFT 20230804 365.0 CALL$

sell $CRM 20230804 245.0 CALL$

I think the seller weight is greater than the buyer weight in the big options order, because the margin pressure is so much. Although the total turnover is only tens of thousands, the margin may need hundreds of thousands or even millions.

In the case of Microsoft, the seller's 2,000 lots of options are equally converted into 200,000 MSFT shares. For Microsoft and bull stocks such as CRM, call option sellers will be more pressure. Because the risk of blowout is higher, it is not particularly confident in the trend, and the general institution will not do a single-leg sell call operation when the upper resistance is too strong.

CRM traders sell call options on Monday. Traders in MSFT were more cautious, selling at Tuesday's highs. These two AI stock leaders without exception chose to sell call at the peak of the stock price, and very tacit choice of August 4 as the expiration date. The expiration is only ten days, the time loss is fast, and the royalties are faster. This is also in line with the opening argument that the event resonates, rubbing up the thunder, and the market has a short-term correction.

Keep an eye on these two orders until the closing time or after the FOMC meeting.

Specific callback points can refer to sell put large orders, such as this one from Netflix, almost around the end of June price range:

$NFLX 20230915 410.0 PUT$

This is also a common situation that I have observed at present. Compared to the short, the market is still more inclined to sell put, even the at-the-money options sell put, even the growth stocks sell put:

sell $RIVN 20231020 25.0 PUT$

sell $BAC 20230901 32.0 PUT$

sell $PINS 20231117 28.0 PUT$

sell $TSM 20230728 91.0 PUT$

sell $PFE 20230825 34.0 PUT$

sell $AMD 20230901 95.0 PUT$

sell $AAPL 20230915 170.0 PUT$

PLTR is special, there is a sell put, there is a sell call, and there is a buy put:

sell $PLTR 20230915 18.0 PUT$

sell $PLTR 20231020 20.0 CALL$

buy $PLTR 20230811 17.0 PUT$

In fact, don't worry too much about how to choose, Ai small-cap stocks still have to see the face of MSFT. From this point of view, the selling call option on October 20 has the risk of explosion, which is equivalent to betting that there is no progress in the AI industry from August to October, which is unlikely?

Finally, I laugh at others to close the position early, others laugh at me not to run. In the issue of when to close the position and run away from the purchase call, it is clear that the institution is more than one.