Turn Around Tuesday or Doomsday? Big Bets on Tech Going Higher #SassyMusings March 3rd

As I mentioned over the weekend here, we were short term overbought based on stocks over their 20-day MA. . You add that to geopolitical events and the uncertainty they create and you get a tough environment for stocks to move further up in.

  • Although today didn’t necessarily “feel good,” for the bulls, it’s hard to become overly bearish when:
    • we managed to close off the lows.
    •  SPX  and IWM were able to close right above their 10 day SMA.
    • TSLA gained $5, AAPL closed in the green and LVS made a new high.
  • Of note, someone(s) is betting on tech to go higher in the near term. See below

Updated Open Interest on SPYIWM, and QQQ:

SPY: About 10,000 185 puts were closed and about 35,000 183 puts were opened.  spy.3.3

IWM: Large increase in the 115.5 and 116 puts. The IWM closed slightly below the large 117 puts. Will be interesting to see if it can be claimed tomorrow or we continue down to those other high put strikes. iwm.3.3

QQQ: About 16,000 90.63 calls were added (most were bought early in the morning and late in the day). Also of note, very late in the day, big 37 XLK call buyers stepped into March (monthly) expiration. The OI on the XLK 37’s went from 52,883 to 134,464.qqq.3.3