today's news of union workers strike against Boeing is driving it down 3% to 157, https://finance.yahoo.com/news/boeing-factory-staff-reject-contract-043851348.html
when BA was trading ~ 160 now trading just below 155. i see more spaces to fall using some of that $22 premium collected in advance to pay for a bearish 20-point PUT spread, Feb '25 expiration. + 155 strike PUT, - 135 strike PUT net cost of $6.6 risking $6.6 for a potential max gain of $20
on 3 Sep today's announcement drove NVDA's stock price up ~~4% to 121. my bullish 50-point CALL spread is worth ~~ $20
on the heels of China's announcement (earlier this week) that it will provide aggressive stimulus to cure its economic ills, KWEB, the ETF that tracks China's Internet stocks, has risen ~~ 26% over the past 4 trading days, from 26 to 33 to my eyes, it is over bought constructed a bearish CALL spread, betting that it will close below 31 by Feb 2025 buy to open 36 strike CALL sell to open 31 strike CALL. collecting a net premium of $2 in advance should KWEB close below 31 by Feb 2025 expiration, i get to keep the $2 willing to risk the max amount of $3 to win the $2 premium
a picture is worth a billion words if you buy in to the growth potentials of NVDA, specifically its GPU chips for data centers, according to these charts, its stock price is way under-valued, the PEG should be at least approximate the PE this Yahoo article, https://finance.yahoo.com/news/hidden-microsoft-metric-bodes-well-084000278.html, tries to explain this seeming disconnecct between (NVDA's) PE and PEG
Since Mar 2023, MSFT has trended upward steadily---reaching the all-time high of 467 in early July 2024. Then, the stock price dipped below that trend line to 384 in early Aug. Since then, trading action has been consolidating around that trend line, which approximates the 200 DMA,. the stock price closed at 416 on Fri in view of these factors, i think that trading action---going into the 22 Oct earnings---will pop, heading towards the all-time high of 467 I've constructed a 30-point bullish CALL spread---using Mar expiration--- to participate in the anticipated pop. buy to open 420 strike CALL sell to open 450 strike CALL net cost of $13.50 i am willing to pay $13.50 for the opportunity to participate in a potential profit of $30
MSFT has been waiting for its turn......... Two things are going to happen soon. MSFT going to retest the 467 high. NVDA to 140-150.
NVDA is a real breakout. for MSFT, This yahoo article suggests that, for MSFT, Should the death cross,, where the 20 dma dips below the 200 dma, not materialize the 50 dma (417.8) could bounce off the 200 dma (415.9), reversing the current down trend the 22 Oct earnings announcement could be the catalyst for the bounce fwiw, market sell off yesterday drove MSFT below the current trend line. the sell off was driven by irrational fear of inflation, even tho the Fed had just cut 1/2 point last week the 2nd Category 5 hurricane in a week spiked oil prices up Russia Ukrine conflict continues too, the middle east conflict all the above contriubted to higher yields in the bond market MSFT was caught---losing 9 points---in that market fear today, both oil prices and bond yields held steady; stock market closed higher MSFT regained most of the losses from yesterday
this was after Monday closing, in which MSFT was down 6, falling below the lower trend line since Monday, MSFT has gained ~~8 point over the past 2 days, to be above the lower trend line, from my perspective, a dealth-cross has been averted, laying the tracks for this likely scenario so much so that i am willing to make another bet on MSFT using 15 Nov 2024 expiration, sell a bullish 25-pt PUT spread buy to open 410 strike PUT sell to open a 425 strike PUT collecting a premium of $6.50 in advance for the 6.50 premium collecting, i am willing to assume a max risk of 8.50 should MSFT trade above 425, by closing on 15 Nov. i get to keep the entire premium
more bad news for Boeing, its credit-worthiness is at risk of being rated as junk, junk bond that it. https://www.bloomberg.com/news/arti...-s-p-as-strike-goes-on?embedded-checkout=true
Equity traders's emphatic FU to the bond traders, who had started this irrational fear of inflation, even after the Fed Chair had announced a 1/2 pt cut 2 weeks ago from my perspective, institutional equity traders are creating this demand for MSFT shares which, in the prrocess, have cleared this technical hurdles above the most recent up trend line above the 50 & 200 dma line above the 50 % retracement level at 417 next technical hurdles to be cleared (imo, by middle of next week) above 20 dma (426) & 100 DMA (428) above 62% retracement, 427 after which, MSFT will be approaching the all-time high of 467.5 rapidly
as a result, BA closed ~~149, down ~~~5 how much lower can it go, where is the next level of support? in the 120 - 130 range
BA trading ~~149 the bearish CALL spread is worth ~ 9.9. was ~$22.2 when i sod it ; most probably will be zero on Feb 2025 this bearish PUT spread is now worth ~~$8.50
Yesterday, MSFT closed ~~419. this AM, opened at~ 422, has gone down since, to 416 decided to sell another bullish PUT spread on MSFT, collecting a premium up front, using Nov 22 expiration buy 425 strike put, sell 405 strik put collecting a premium in advance of $8.27 at Nov 22 expiration should MSFT trade above 425, both contracts will be worthless, i get to keep the premium that was collected in advance should MSFT turn against me---trading below 425---my max risk has been defined to be $11.73. (20 - $8.27)
on Thur, NVDA reached an all-time intraday high of 142; on Fri, it closed at 138 my bullish 50-point CALL spread is worth ~~~ $22.8
2 weeks ago, 9 Oct i was off by a week, today, so far, MSFT is up ~~~ 9, to 427, clearing all the technical hurdles; w 6 more trading days til the next earnings release.
