As predicted, the taper is coming but no rate hikes seem to be coming this year. In short, the market bounced on the rate hike news and leveled off towards the end of the day. It seems the correction that will come will be more off macro level variables , such as debt, rate hike, inflation and the like. I expect the bull market to continue and to see new highs going into 2022.
On the docket this morning:
#GME: Had a large swing and increased volume yesterday of 11.3M . Meme stocks were given a boost yesterday and I added some more shorts at the peak of the upswing and bought a call early in the morning as a small hedge to the upside. Keep an eye out for continued swings and premiums to be overpriced. Great theta plays to be had.
#MRNA: Came off hard overnight, dropping 10.82%, as earnings released this morning. This is putting some of our theta/longs in danger, but our strikes are still below the current share price. I had a hedge to the downside, bought a put, but I closed it yesterday as the stock seemed to be strong. This was clearly a mistake, so will continue to monitor this stock closely. Might see a rebound here, similar to what has been going on with tech earnings i.e AAPL, TSLA, AMZN, NFLX all dropped after earnings reports but bounced shortly after
#TSLA: Continues to rise and hit new highs, there is a great bull call credit spread to play here, and I plan to continue to do so until the stock shows weakness. I am expecting this weakness to be around the ~1300 price point.
Best luck trading today.