
Rocket Equities & Options Report 02-13-23
Rocket Equities & Options Report
By Tommy O’Brien
Feb 13th, 2023
The markets are trading higher into the CPI data tomorrow morning. We are at some critical areas technically in the indices. Markets look toppy at the 4,140 area, yet we have said that before. We will see how CPI comes in tomorrow, and how markets react. I will have an update out later this week.
Lots of companies still reporting this week, on our radar:
Tuesday before the open: KO
Tuesday after the close: ABNB
Wednesday after the close: SHOP
Thursday after the close: AMAT, DKNG, DASH
Friday before the open: DE
Stay tuned for updates!
Positions:
We are holding a debit put spread in the SPY from $370-$330 for a net debit (cost) of about $4.60. This is currently trading at around $0.80. We are going to hold this for now, even though it most likely will expire worthless. This was always a longshot trade that was well out of the money. The next Fed decision and press conference is March 22nd. These options expire March 17th. We will see how the February data looks as we get into March, but at 4,140 I still see lots more risk to the downside in this market right now at this price level. I could see the scenario where the market accelerates lower into the March meeting if the February data doesn’t line up with the idea that we are on the path to 2% inflation as fast as some may think.
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