The market posted steady gains yesterday going into the afternoon, with most indexes up 1%+ my mid morning. However, the first case of the Omicron virus hit U.S. soil, landing itself in San Fransisco. This lead to a massive panic market sale, and the indexes shredded gains, finishing down more than 1.5% going into close. The VIX spiked as hedging continued, rising over 20%. Wall Street looked to control risk, as a possible lockdown may be looming once again.
However, given the data that is currently available about Omicron, this panic sale could be a "buy the dip" play. Omicron may be more transmissible, but it has extremely mild symptoms or none at all in the cases reported so far. Similar to the delta variant, markets panicked then gain steady steam in the following weeks. A good indicator that the rebound is most likely is that "Covid" stocks such as MRNA, NFLX, DASH and others kept following the trend of the market, hitting new monthly lows coming from Nov1 to present.
#SNOW was a late play in the day, as I loaded up on calls going into earnings. The stock was beaten down 8% on Wednesday, and it seemed to be a good buy given the dip and early expectations that SNOW was indeed going to have a strong quarter. SNOW is up over 14% in pre-market and we could be looking at some big gains.
#NFLX has come off a lot putting pressure on my puts. I closed some of my sold puts yesterday, and sold lower strikes to compensate. I am still short there , as I bought a put on Tuesday as a hedge.
#GME continues to slide but still holds some support at ~180. I have sold puts and hedge as well buy buying puts for a credit spread middle.
#TSLA tumbled again but still has major support at ~1100 , quickly gaining back any spikes lower. We have a strangle here that I keep tapering closer as the trading window narrows.
Overall, I expect the market to gain today, as more and more news comes out on the new variant. Obviously , inflation and tapering still are major market variables, and that is why the sell off was so strong after the Omicron news. Don't forget to join the new discord : https://discord.gg/
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