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Morning Brief- DWAC, GME and Market Pressure

Stocks were mixed throughout most of the day, trading flat early on and finally gaining some steam late into the afternoon. This comes after a day of huge gains on Tuesday, causing profit taking to continue sending the market sideways. Futures are down this morning, as more covid Omicron cases pop around the United States. However, we got good news (as expected) that the current vaccinations protect against Omicron and cases continue to be mild with speedy recovery.


#GME reported earnings yesterday, missing huge on EPS, losing (1.39) when analyst estimates were a loss of ($0.52). However, revenue did increase to $1.3 billion. The loss comes after a front loading of inventory, as GME was piling stock for Christmas to avoid supply chain issues. GME is down over 4%, which is expected after such a miss. Our credit spread hedged our downside here, and I will continue to add on shorts this week and next week to capture value on volatile premiums.


#DWAC was quite the stock yesterday, ripping over 25%, and hitting the $66 price range. I bought calls earlier in the day as DWAC got over $1billion in new investments and a bottom bullish trend was forming. I will prob start selling calls on DWAC as a downward hedge , as premiums are still overpriced after such a large price move.


#TSLA I called the bottom there early in the morning, and for those that are in the discord and subscribe to my daily package, we caught huge 30 pt + upswing. Large volumes came in later in the afternoon, and for a stock that is averaging 25 million in volume, it only had traded 5 million into mid morning and was still touching the resistant point.


I expect the market to trade sideways and lose some momentum today, and this is great for theta, so I will continue to add on to my positions and close out pure long plays to avoid losing the premium extrinsic value .


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