NVDA big unwind in the call options today. The call skew (aka how juiced the calls were) going into this CES 2025 event was similar to an earnings date or a major event so once it passed and the market got some bad data (prices paid data) it went from one side of the boat to the other and we got a clean unwind in the market. We should get a bounce once things normalize and if the market bounces but if it needs time to just consolidate I wont force a bounce.
Quantum names will be top of list for unwind this week but I think there may be a hard swipe back up at some point as all the shorts who have been waiting for this to pop will likely get super aggressive off the open and it could be crowded. Hopefully a big clear out and then the real unwind happens over the next few days.
The rate on the 10 year really surged off the economic data today. The high bond yields make the market unstable so that’s a big reason why we are seeing this type of action. Good to have TNX and VIX on your charts in this type of environment.
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