tastylive: Last Call

AMD surged with a six-standard deviation move following its OpenAI deal, prompting traders to enter strangles after the initial price jump. Meanwhile, multiple asset classes are making historic moves simultaneously, with the S&P 500 and NASDAQ hitting all-time highs. Gold touched $4,000 and silver reached $50, both up for eight consecutive weeks. Bitcoin also reached record highs, while the U.S. dollar experienced its biggest surge since November 2023, pressuring global currencies including the euro and yen. Rare earth metals stocks like MP, LAC, and TMQ have gained momentum as the U.S. government takes stakes to counter China's dominance in the sector. Jamal noted he's using put diagonals in SPY and SMH for portfolio protection, though bearish positions have generally been "donations to the options gods" in this relentless bull market.

This Week in Stocks' highlights include the Dow, Nasdaq, and S&P 500 reaching all-time highs, a significant move in the U.S. dollar, and mixed signals on rate cuts following GDP and core PCE reports. Lithium America stocks gained attention amid government interest in essential metals. Gold and silver continue their upward trend, while VIX remains stable in the teens. A noteworthy chart showed an extended period in Contango, and Bitcoin struggled with a 5% decline. Market restructuring is evident as major companies adjust strategies.

Join us as we dive into the latest market movements and financial highlights. This week, the Federal Reserve sets the stage for upcoming rate cuts while major stocks like Tesla and Nvidia make headlines with significant moves. We also discuss the emerging trends in quantum computing stocks. Don't miss out on the insightful analysis and trading strategies that could shape your investment approach—tune in for all the details!

In today's From Theory to Practice, Jim Schultz discussed the positive side of theta in options trading, emphasizing how option sellers benefit from time decay. When selling options, positive theta creates natural downward pressure on extrinsic value as expiration approaches, improving probability of profit for out-of-the-money positions.

S&P futures surged 45 handles, extending gains that began after yesterday's FOMC meeting. Nasdaq jumped 260+ points while Russell led indices with a 24-point gain. VIX showed minimal movement despite the rally, confirming market strength signaled yesterday when volatility declined even during market pullbacks. Tech stocks drove the advance with semiconductors showing exceptional strength. Intel jumped $7, NVIDIA gained $5, and AMAT rose $10, pushing the semiconductor index (SSMH) up $9. During the Confirm and Send segment, Tony and Nick addressed position management thresholds (60-70 deltas), premium selling in low IVR environments, triple witching implications, and retail order priority over institutional orders at the same price point.

What did the markets really think after Fed rate cut arrived as expected? Price action across US stocks, bonds, gold, and the US dollar seem to hint at what's next. tastylive's Head of Global Macro Ilya Spivak breaks down the policy update from the Federal Open Market Committee (FOMC) and considers why traders' response may be signaling that a major inflection point across key markets has arrived.