To The Moon

One of the big surprises last week was that the Federal Reserve opened up the water again, providing another $300 billion of credit to the banking system. If interest rate cuts are interpreted as missiles, this credit supply can be interpreted as handing banks a revolver with plenty of ammunition. From the Fed's point of view, a problem that can be solved with a gadget doesn't need a big one.

Liquidity is indeed provided objectively. The apparent spillover of liquidity sent tech stocks soaring, not knowing whether the market was unnecessarily misunderstood or not doing the right thing.

The experience was eerie: it was as if the community had organized fundraising for critically ill patients, only to find that the patients' homes had been equipped with the latest computer 3D printers and VR devices. Family members say the disease should be treated, but at the same time, they should keep up with The Times and have the most advanced productivity.

What else does the community council have to say? Is the patient all right? Raise interest rates! A sharp 25 basis point hike!

A look at bank stocks and property shows that many of the big put orders were ambushed on February 2, the last FOMC press conference. I'm looking forward to what we find out after our midweek FOMC meeting.

The big bank that has pulled back the most so far is $Bank of America(BAC)$ , which fell below its October low. However, from the option movement, there are still institutions firmly short below 26:

• ​$BAC 20230616 26.0 PUT$ $BAC 20230616 26.0 PUT$ 

If you want to buy stocks at low prices, you can follow this sell put: $BAC 20230519 21.0 PUT$ $BAC 20230519 21.0 PUT$ 

I mentioned earlier that institutions sold a lot of Microsoft puts, but didn't buy the call. I was wrong. Some institutions bought it in batches, so it was not shown on the large order:

• ​$MSFT 20230721 300.0 CALL$ 

Institutions bought 15,000 lots on March 9th with a price target of 300. But now it has closed two-thirds of its position, leaving a third of profits to run. It's not very maneuverable. I still think it's better to sell put.

Microsoft correction end time point, you can pay attention to this put open positions: $MSFT 20230428 275.0 PUT$ $MSFT 20230428 275.0 PUT$