The Qs Just Did Something They Haven’t Done Since April

Dear trader,

The Qs did something Thursday they haven’t done since April, and it took them one month to erase everything they’d built since then. I’ve seen this kind of damage once before. You have to go back more than a decade to find it, and how that one ended is why I spent Friday pulling up an old chart.

Then there’s what the Mine turned up. Roughly 70 million option contracts traded Friday, and my software handed me 276 worth a look. A handful of them in NVIDIA caught my eye, and they line up with what I’m seeing in SpaceX and Palantir.

I watch for one specific thing in the put market before I get anywhere near a bottom. The NVIDIA activity tells me where we stand on that, and it changes what I’m willing to put on next week.

Watch the whole water cooler below.

Your only option,

Mark Sebastian

Mark Sebastian

Mark Sebastian

Mark Sebastian is a former member of both the Chicago Board Options Exchange (CBOE) and the American Stock Exchange (AMEX), where he spent years mastering the art of options trading in the most competitive environment imaginable. As Chief Investment Officer at the hedge fund Karman Line Capital, Mark manages sophisticated options strategies for institutional clients. He is the author of two highly regarded books on options trading: ‘The Option Traders Hedge Fund’ and ‘Trading Options for Edge.’ Mark is a frequent guest on major financial networks including CNBC, Fox Business News, Bloomberg, and First Business News, where he provides expert commentary on market volatility and options strategies.

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About the Author

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Former CBOE floor trader and CIO at Karman Line Capital. Author of ‘The Option Traders Hedge Fund’ with over 30 years of options trading experience.

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