Focus on stocks that are not making new highs.
This earnings season has been so fun that even a strong report like Nvidia's can fall. At present, FANNG stocks have almost gone through a low open high or high open low routine.
With the last heavyweight stock earnings landing, the volatility index $Cboe Volatility Index(VIX)$ has fallen to another low, bringing a clear shift in the optics-buyer market dominance. PUT calls have been more active recently, replacing the previous put and CALL calls with put and call calls, such as Microsoft $MSFT 20240119 355.0 PUT$ and Apple $AAPL 20241220 250.0 CALL$ .
I have no doubt that the two companies will continue to create new highs, but from Nvidia's financial performance, it will take some time for the market to digest the high stock price before touching it, which may be a correction or it may be sideways, so the company that is chasing high tonight is not Nvidia but AMD. So although Tesla does not have any rebound signal at present, it is the most worthy of attention, and the most suitable target for selling put.
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