Group 1: Market Overview - The current market is largely unaffected by the government shutdown, with a focus on business as usual [3][4][6] - The discussion includes a retail focus, particularly on home improvement and consumer spending trends [3][8] Group 2: Lowe's - Lowe's has experienced a significant downward trend, declining over 4% in the last month, with economic concerns impacting consumer behavior [4][5][6] - A trading strategy involves buying 245 puts and selling 235 puts, creating a $10 wide spread for a $2.50 debit, anticipating a continuation of the downtrend [7][8] - Technical analysis indicates key support levels around 245, with bearish divergence noted in momentum indicators [12][14] Group 3: Target - Target's stock has dropped approximately 35% year-to-date, presenting a potential contrarian opportunity for a bounce [15][16] - A trading strategy involves buying a 95 call and selling a 100 call, costing $130, with a target for a near-term bounce based on high implied volatility [19][20] - Technical analysis suggests a potential bottom around the 87 level, with a falling wedge pattern indicating bullish potential [21][24] Group 4: Alibaba - Alibaba's stock has increased over 100% year-to-date, but there are bearish sentiments due to parabolic price action and exceeding expected moves in the options market [27][29] - A trading strategy involves buying 165 puts and selling 155 puts, creating a $10 wide spread for a $3.50 debit, anticipating a pullback [31][32] - Technical analysis highlights a potential gap fill around 165, with mixed signals from momentum indicators and volume nodes suggesting key price levels to watch [33][37]
The Big 3: LOW, TGT, BABA