Published with permission from the options flow and sweep specialists at Sanglucci.com.
A looser overnight session was met with another morning rampjob as traders prepare for Trump to take control in nine days. But the early momentum was cut short as “the Don” took to a press conference to denounce the “pee pee papers”. (Really, people? This is what you want to talk about instead of Dodd Frank / Volcker rule?)
But after some name calling and a bunch of paper ridden folders on a table were put on display, calmer heads prevailed and the SPY picked itself up and walked back to highs. But then Trump kept talking and algos had a seizure, spiking prices again before good ole’ Plunge Protection picked us up by the collar and walked things into the close.
Through all the back & forth and wild headlines, smart money decided it was probably best to just sit this one out. Flow was quiet today as earnings action takes the forefront and markets transition into a more opportunistic mindset.
Though it would later die down, flow was a bright spot to start the day as sharks dove into the waters immediately off the open. Early conviction surrounded CRM as one trader abused the March expiry calls along the way to hitting some weeklies and Februaries. With the stock reporting on 2/23, there’s plenty of time and room for those March $85 and $82.5 calls.
FSLR found itself ringing scanners as it pumped over 3x normal options volume on the day. One shark was a big buyer of 3,000 June $40 calls as well as 2,400 March $37.5 calls. Feb $37.5 calls caught some action as well, but we find ourselves wondering who’s betting on solar into earnings…
The backside of the market saw crude rip shorts to oblivion as production numbers, or something, drew algos into a ramp this morning. And TLT is quietly back over $121.
There’s a lot going on while we all focus on this whole three-ring circus of a transition unfolding on the teevee.
What we saw today was largely a non-event. It served as a great way for everyone to get all hot and heavy under the hood, but little changed by way of market sentiment. The underbelly is still very much bullish, but momentum has undoubtedly slowed. Bets continue to fly, but smart money is getting smarter in the ‘where’.
We still expect Trump’s first 100 day’s to be met with some downside on the SPY but the flow has yet to signal any such sentiment change. Until then, back and forth we go.
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