Markets are getting smoked today with the big dogs Walmart Inc. (NYSE: WMT) and Home Depot Inc. (NYSE: HD) in the toilet after reporting earnings. There’s no bid in sight for stocks — though, we might see some action around Wednesday’s Federal Open Market Committee (FOMC) minutes dump around 2 p.m. ET, which could turn things around…
We saw Chinese ADR stock Pinduoduo get crushed — those names are always a gamble — with JD.com down 10% as a player came in laying out $160,000 on the March 17 expiration, $70 strike puts. That gave us a nice one-hour sell signal for PDD on my Master Indicator.
As famous investor Peter Lynch once said…
“Know what you own, and know why you own it.”
In addition to knowing why we own a stock, we also always want to know who else is buying/selling it in size.
Next up, Google parent Alphabet had degenerates trying to catch a bounce in the stock as headlines over the company’s latest legal drama hit the tape. Could we see more news Tuesday afternoon?! The March 3 and March 10 expiration calls were scooped up right and left on top of more than $1 milly in call premium on Friday!
We also have another name rolling in on the wire straight from Detroit — Stellantis. The jeep-maker saw earnings bets on the Sept. 17 puts — only $100,000 in premium, but damn… a nice jeep is about $60,000 these days… And the EV-hybrid version pushes $70,000. The days where we could buy a new jeep for $45,000 are fading like a cloud of dust in the rearview mirror.
Agriculture stock Mosaic saw some weekly puts that capture earnings after we had major put flow in competitor CF Industry Holdings Inc. (NYSE: CF) this past week. Nothing is safe in this sell-off, not even the agriculture fertilizer names.
It’s gloomy out there and my book is down a few dimes — meaning thousands of dollars if you’re not the degenerate gambler type — so it’s a great time to scale down position sizes and stay nimble.
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Of course, we’ll keep our eyes on the FOMC and continue to monitor the flows…
- Pinduoduo Inc. (NYSE: PDD: March 17, $70 PUT.
- JD.com Inc. (NYSE: JD): Feb. 24, $48 CALL.
- Alphabet Inc. (Nasdaq: GOOG): Feb 24, $95 CALL.
- Stellantis NV (NYSE: STLA): Sept. 15, $17 PUT.
- Mosaic Inc. (NYSE: MOS): Feb. 24, $48 PUT.
Check out my short video as I break down the day’s most unusual options order flow in no time flat!
