06/07/2022 Watchlist Chart
Watchlist for Tuesday, 06/07/2022
On Friday, $SPY gapped up to match the futures move up last night. I warned about net premiums being at -$307.77M, and SPY gave up all of those gains to fall back towards the 410 range. Net premiums have now recovered due to a huge block order around noon on 10/21 388P being sold for $317M credit (a bullish trade).
Before the close, We mentioned that the MOC imbalance was $525M to the sell-side. The market has been dropping since and futures are currently down -0.52% after hours.
$BABA – The stock traded up 6.22% during market hours and was up 0.46% after hours. There were multiple bullish flows that came in last week into the 95C and some continuous buying during Monday’s trading sessions as China is in the progress of lifting their COVID-19 restrictions. Overall BABA is still in an overall downtrend but gapping above the 50DMA (95.69), might lead to a backtest with futures being down currently. A good entry would see if BABA can hold that back test to get into a position for the 100 test. Keep an eye on the 100 or back test 97 level, as it can test 104 (near 100DMA) to 110 level resistance. Above 110 level, it can test 114 to 119 level resistance. We will consider puts if BABA fails to hold above the 97 levels, as it can test 95 (50DMA) to 93 level support. Below that can test 90 to 87 level.
Above 100 or B/T 97 level: 102C 06/10 (4.8K Volume @ 1.65) or 100C 06/10 (14.3K Volume @ 2.40)
Below 97 level: 95P 06/10 (3.2K Volume @ 1.27)
$AMZN – The stock traded up 1.99% during market hours and was up 0.34% after hours. After the 20:1 stock split, AMZN finally is at a price that many retail traders can have in their portfolio without spending thousands of dollars for a share. This is the first stock split for AMZN since 1999. On the daily timeframe, AMZN found a clear resistance at 128 level resistance forming a double top with a gap to be filled from 130 to 140. Contrary to how the market is, the flow is still bullish on AMZN with the 130C weeklies. Keep an eye on the 128 level, if AMZN can break above with volume, it can test 130 (start to gap-fill) to 134 (50DMA) to 136 level resistance. Above 136 level, it can test 140 to 144 level resistance. We will consider puts if AMZN fails to hold above the 126 level, as it can pull back down to 119 (9DMA) to 116 level support. Below that can test 112 to 110 level support. Below that can drop down to 106 to 104 level support. Under is 101 level.
Above 128 level: 130C 06/10 (206.1K Volume @ 0.96)
Below 126 level: 124P 06/10 (17.9K Volume @ 2.41)
$NVDA – The stock traded up 0.35% during market hours but was down 0.10% after hours. Double inside day on NVDA and trying to hold onto dear life as many other semis closed red for the day. There was significant flow into the 190C for the weeklies with a possible dip and rip on Tuesday if there’s a buy the dip type of scenario. NVDA is showing better strength than its competitors. On the weekly timeframe, NVDA has also the support of the weekly 100MA (185.45), so this would be a great backtest again entry for calls. Keep an eye on the 189 level or back test 185 level, as it can test 194 (9WMA) to 197 level resistance. Above 197 level, it can test 200 (break out level) to 205 level resistance. We will consider puts if NVDA fails to hold above the 185 level, as it can pull back down to 183 to 178 level support.
Above 189 or B/T 185 level: 195C 06/10 (20.2K Volume @ 2.15) or 190C 06/10 (19.5K Volume @ 4.05)
Below 185 level: 180P 06/10 (18.8K Volume @ 2.18)
***NEWS TO LOOK OUT FOR THIS WEEK***
- Unemployment Claims Data on Thursday (06/02) at 5:30 am PST/8:30 am EST
- Core CPI for May 2022 on Friday (06/10) at 5:30 am PST/8:30 am EST