To The Moon

Yesterday was the first day of September. Historically, September has seen a sharp pullback, but yesterday the S&P and Dow closed higher, barely near their 60-day lines.

There are many reasons for the recent pullback, mainly due to the Jackson meeting, the dollar index also reached new highs. Then there's the Nvidia chip embargo. So today after the release of the non-farm data market will turn to economic data, is an important cut-off point, the market is not soaring, or crash.

We can analyze the following capital wind direction from yesterday's large single move in the options. Market trend and weight shares are usually highly consistent, it is OK to see the big single of these stocks.

$Tesla Motors(TSLA)$

Tesla had a typical call spread strategy with these two big orders:

• ​$TSLA 20230120 300.0 CALL$
• ​$TSLA 20221118 283.33 CALL$

Based on the strike price selection, the trader should sell $283.33 and buy $300. The thinking is that Tesla will not trade above $280 or so in the near term. This is a bearish strategy. In terms of time, he chose the maturity date in November and January next year, which was relatively wide.

This is also a less positive message. He believes that Tesla's stock price will be in a mean-reverting state in the last month or two, and even if there is a spike, it may not be the kind that goes away forever.

$Microsoft(MSFT)$

Relatively bullish, except for other deep in-the-money options PUT spread strategies, is this pair:

• $MSFT 20221118 260.0 CALL$
• ​$MSFT 20221118 290.0 CALL$

Relative bullishness means the stock is not expected to rise above its previous high of $290.

As for other heavyweights, Amazon is similar to Microsoft, while Google is straddle and does not give a clear direction.

Summary: From the perspective of several large orders of weight stocks, the recent market will rebound, the focus should be Apple Amazon Google these weight stocks, Tesla these list is quite strange, suggest to observe again.

$NVIDIA Corp(NVDA)$

The main problem for Nvidia is that the stock shouldn't have fallen so much in terms of losses, and the reasons behind the selloff are widely debated. The worst guess, of course, is that there will be adverse policies to follow. From the option orders, last night the large orders were mainly straddle and bear put options, the short direction of the strike price at $130 and $120.

From my trading perspective, I think it should be a long position. We all know the long-term value of Nvidia as a chip leader, but from a risk perspective, a straddle portfolio is a better choice.

Finally, a strong call order for deep in-the-money options:

$F 20230120 10.0 CALL$