Pullbacks Are Sell Put Opportunities
Monday's chip stock plunge wasn't just due to crude oil prices rising again — Meta's stock price also pulled back, and as seen from last week's correlation, the two are highly linked. But no need to rush, because OpenAI is also about to launch an around-the-clock online assistant this week. It's foreseeable that Anthropic and other major players will follow suit with personal assistants.
So the conclusion is: Monday's pullback is very suitable for Sell Puts, for example:
Among these, Qualcomm has a medium-term bullish block trade $QCOM 20270219 250.0 CALL$ , also benefiting from mobile AI applications, which gave a boost to the mobile CPU theme.
Micron reports earnings this week — there shouldn't be any major surprises. The data will be good, but the market is more focused on how much longer it can rally. The memory shortage is currently expected to persist until 2028. The stock's post-earnings move is expected to stay within volatility expectations, making it more suitable for Sell Put strategies.
Oil bets differ somewhat from last week — block trades lean toward oil prices not falling back to previous lows before year-end, but instead remaining above a certain level. This is very unfavorable for inflation expectations.
It's foreseeable that OpenAI's assistant launch will put some pressure on MUSE, making it hard to continue challenging 900. But as I said, with MUSE as a product supporting META's stock price, it's not so easy for the stock to fall either. So just choose the most worry-free strategy — any strike below 700 works.
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