Omicron is once again sweeping headlines , stocks plummet early in pre-market. This comes, after a continued sell off, post the Fed decision. Markets are still uncertain , and the VIX is spiking 20% . This was one of the few trades we carried into this week. The rest of the world is seeing the same. The selloff began during the session in Asia, where the Hang Seng Index fell 2%, and then extended to Europe, where the EURO STOXX 50 slid nearly 3% . U.S., stock futures were off 1.5% . Crude is taking a huge hit , as the WTI is sinking 4.5% and commodities such as gold and silver are taking a dive well.
With so much uncertainty the real question we have is what do do this week. I will continue to hold our VIX position, and will spend most of the time putting on hedges to long term trades. This will be what most of Wall Street will look to do today, which will drive the VIX even higher. We own a lot of VIX 21 21contract calls here, so we might close and roll before expiration l could see the price hitting over ~30 again today or by tomorrow.
#MRNA and other covid stocks are recovering from their downturn. MRNA is once gain over $300/share and is up 8.55% in pre. Could look for a long play here , as historically MRNA can gain over 30% on days like this.
#AMZN is still a stock that I don't see downswing more than a few points, so I might leg into some long positions here, either buying calls or selling/theta puts on this down swing.
#NVDA continues its down swing, off another 3% today . NVDA's deal with ARM is still looking unlikely , which could really hurt NVDIA's control over the semi-conductor market. I do expect this stock to bounce back over $300 for year end, and will look to get into some short term length with some call spread plays.
Overall, the market today is one you just want to scalp on ( where you do short term trades just in and out off small market swings)
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