An important adjustment impacting next week's expiration - open interest on the $NVDA 20240920 110.0 CALL has dropped to just 41,900 contracts remaining.
This effectively raises Nvidia's upside call strike ceiling to $120 for next Friday's close, shifting the focus away from $110 to a broader $110-120 range.
The question then becomes - at what level do funds look to roll their $113 covered call position that remains open?
My $116 covered call is also still open. I closed the $NVDA 20240920 105.0 PUT$ overwrite and rolled it down to $105.
That ultra-short-dated $119-126 call spread I noted yesterday has rolled again, closing and re-opening in the $124-130 range - suggesting a continued bullish bias:
Buying $NVDA 20241018 124.0 CALL$
Buying $NVDA 20241018 130.0 CALL$
Overall, Nvidia's uptrend looks fairly stable and smooth for now, with little reason for concern over a significant pullback.
We saw a massive $450 million bullish call buyer hit $MSFT 20250321 450.0 CALL$ for around 90,000 contracts.
This is an extremely positive flow that should put to rest any fears over a looming tech selloff in the near-term.
$AVGO 20241220 146.0 CALL$ saw a 26,300 contract traded on Thursday with unclear direction based on the price of $27.50 (between the $27.30-27.85 market).
Given the wide bid/ask spread, it could have been buyer or seller-initiated. But based on price action, likely a buyer. Nevertheless, one to keep on the radar for further flows.
No urgent need to chase chipmakers beyond Nvidia exposure for now.
With defensive index flows persisting, if tech can't shoulder the broader pullback, which sector will?
We saw a large $73.8 million buyer open interest in the $XLF 20250620 43.0 PUT$ on Thursday - 41,000 contracts traded.
Suggests avoiding or underweighting financials near-term may be prudent.
Tesla will likely remain rangebound between $200-230 next week, unable to break out decisively in either direction.
Selling out-of-the-money call and put spreads within that range should capture the ideal exposure.
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- andy66·09-13Thank you, fellow leeks on Wall Street. Every time I buy when there is a big drop, they can pull it up.1Report
- KSR·09-14👍LikeReport
- YueShan·09-14Good⭐️⭐️⭐️1Report