Time now for options corner. We are taking a look at Disney today which is set to report earnings on Monday. Joining us to take a deeper look at the chart is Rick Dukat, lead market technician.All right, Rick. Uh some say that Disney is going to have a good year this year, but take us through what you noticed in the chart. >> Yes, good morning Diane.And uh the streaming space certainly has been an interesting one lately uh with this whole deal between Warner Brothers and Netflix and Paramount Sky Dance here ...

Company Overview - CoreWeave is a company that provides a cluster of supercomputers for rent, allowing users to access their processing power, particularly in the AI sector [2] - The company has experienced significant volatility, with a notable increase of approximately 108% since it began trading, outperforming the XLK Technology ETF and the S&P 500 [3] Market Performance - Despite a recent decline of 55% from its all-time highs, CoreWeave has managed to hold onto a critical support level, indicating potential resilience [5][6] - The company is currently facing a high-risk designation from analysts, with a renewed buy rating and a price target set at 135, although this represents a cut from previous estimates [4] Technical Analysis - Key resistance levels to watch include recent highs at 9066 and a gap near 98, with the 20-day simple moving average crossed above, indicating potential upward momentum [7] - Volume profile studies reveal significant trading concentration areas at 74, 90, 98, and around 105, which could influence future price movements [8] Options Market Activity - The options market for CoreWeave has seen substantial activity, with around 640,000 options traded, of which 62% were calls, indicating bullish sentiment [10] - Notably, a significant trade involved a long put option, suggesting some bearish sentiment, with a break-even point at approximately 4810, indicating a potential downside of 42% [12]

Core Insights - Palantir has significantly outperformed the overall market and its technology sector, with a 213% increase over the past year compared to the S&P's 12.5% rise [2] - The company specializes in large-scale analytics for counterterrorism and other unique projects, making it difficult to find direct comparisons with other firms [3] - Despite a recent pullback, Palantir's stock remains up over 130% year-to-date, indicating strong investor interest [9] Stock Performance - Palantir's stock has shown a range between 169 and 187, with a recent high of 207.50 before declining [4][5] - The stock stabilized at a 63-day exponential moving average around 175, which may serve as a support level [6] - An expected move of approximately 11% is anticipated for the stock by November 21, with key volume nodes identified at 153 and 190 [7] Trading Strategy - A neutral to bullish trading strategy is suggested, taking advantage of the higher implied volatility due to a recent 12% pullback [10] - The proposed trade involves selling a 165 strike put and buying a 155 put, creating a $10 wide neutral to bullish put vertical [12] - This strategy offers a potential profit of $250 with a risk of $750, providing a break-even point at 162.5, which is about 5.5% below the expected opening price [13][14]

Core Insights - Texas Instruments (TXN) has underperformed in the semiconductor sector, with a decline of approximately 8.2% this year, while the semiconductor ETF (SMH) has increased by about 37% [1][2] - TXN focuses on stable, reliable chips for industrial and automotive markets, differentiating it from high-end computer chip companies like Nvidia and Intel [2][3] Market Trends - The semiconductor sector shows varied performance, indicating that not all companies are equally positioned within the industry [3] - A falling wedge pattern has been observed in TXN's price action since reaching highs near 221, with key support levels identified between 172 and 175 [3][4] Technical Analysis - The price has recently bounced back to the middle of the trading range, with resistance noted around 187 and a significant trading area near 185 [4][6] - The RSI is nearing a bullish crossover, which could indicate a shift in momentum [5][6] Trading Strategy - An example trade strategy involves buying a call option at the 180 strike price and selling a call option at the 190 strike price, creating a bullish $10 wide call diagonal [9][10] - The trade anticipates a rebound, with a break-even point above 182, which is slightly over 1% above the current share price [12][13] - The strategy leverages implied volatility differences, with the October 31st weekly 180 call at 59% and the October 24th 190 call at 82% [10][12]

Core Insights - Strategy's shares have increased by approximately 5% following a recent at-the-money offering, raising $128.1 million and acquiring 196 Bitcoin for about $22.1 million at an average price of $113,048 per Bitcoin [1] - As of September 28th, the company holds around 640 Bitcoin with an average purchase price of $73,983 [1][6] - The company has demonstrated significant long-term growth, with a 2300% gain from a low point of 1326 to its current level [4] Company Performance - Strategy has outperformed other companies in the crypto sector, such as Coinbase, Riot, and Marathon, over a three-year period [5] - The company's Bitcoin holdings are valued at approximately $69.5 billion, although critics argue that these gains are not liquid and could lead to market instability if cashed out [5][6] Technical Analysis - The current chart indicates a bullish pattern, with a falling wedge shape suggesting potential for a breakout [8] - Key resistance levels are identified at 358 and 400, with significant trading activity around the 330 level [9][10] - The expected price movement for October 17th is projected to be ±12.6% within 18 days, indicating potential volatility [12] Options Activity - A total of 383,000 options were traded, with two-thirds being calls, although current activity is below the five-day moving average [13] - Notable trades included large positions in October 3rd calls with a total debit of $24.7 million, indicating significant short-term trading interest [14][15]

Market Overview - The recent rate cut by the Federal Reserve has raised concerns about the economy, particularly regarding employment stabilization versus inflation focus [2] - The major tech stocks, referred to as MAG 7, have been driving the market higher but are currently experiencing a pause [2] Clorox - Clorox is being considered as a defensive investment due to its status as a consumer staple, especially as tech stocks take a break [3][4] - The company's recent earnings reported revenue of $7.1 billion and a gross margin of 45% [4] - The stock has historically bottomed around the $118 level, indicating a potential low-risk, high-reward opportunity [5] - Technical analysis shows a recent price range with resistance levels at $132 and $127, and a significant support level at $118 [7][11] - A bullish divergence in RSI suggests potential upward momentum despite recent price declines [9][10] - The proposed trade involves selling a $120 strike price put option expiring on October 17, which could yield a 10% return if the stock remains above $120 [12] American Electric Power - American Electric Power is highlighted for its vertical integration in the energy sector, providing a diversified approach to electricity generation and distribution [15] - The stock has been in an uptrend since July 2023, recently bouncing off a technical support channel [16] - Technical indicators show a series of higher lows, with important resistance levels around $110.50 and $115 [20][21] - The proposed trade involves a call option with a $105 strike price expiring on June 18, 2026, with a break-even point at $115 [23] Lowe's (Insurance Company) - Lowe's is recognized for its diversification beyond insurance, including investments in energy, natural gas, and hospitality [25][26] - The stock is in a long-term uptrend, supported by its diversified business model [27] - Technical analysis indicates a breakout above previous highs, with significant trading activity around the $96 to $97 level [30][34] - The proposed trade involves a long call option with a $90 strike price expiring on December 19, 2025, with a break-even point at $101 [37]