Flash Alert - Stocks Rally in Post Election Mood Swing. Take $1060 Profit on GNRC Call Option.

We live in interesting times.

Mood Swing - Image courtesy of wallpapercave.com.

Sell to Close the Generac Holdings (GNRC) 12/20/24 $175 Call Option for $1070 Gain.

I am recommending Selling to Close the Generac Holdings (GNRC) 12/20/24 $175. Generac is the leading electricity generator company in the U.S. It tends to rally ahead of hurricanes and snow storms and quickly sell off as the event is peaking. With a potential hurricane brewing in the Gulf of Mexico over the next few days, owning these shares will offer the opportunity for short term gains.

The stock has erupted with a new hurricane possibly hitting the Gulf of Mexico. But it’s time to close out this option.

• Sell to Close the Generac Holdings (GNRC) 12/20/24 $175 Call Option up to $8. Bought 11/4/24: $7.20. 11/6/24 intraday price: $17.80. Return for this trade: $1060/contract (147.2%).

Mood Swing - Image courtesy of wallpapercave.com

Market Update

Stocks are rallying this morning. The New York Stock Exchange Advance Decline line (NYAD) is once again above its 50-day moving average. This remains a short term positive, but rising bond yields may cause problems in the near term.

Bond yields have broken above their recent resistance level of 4.3%. The U.S. Ten Year Note (TNX) is well outside a normal trading range, but continues to have upward momentum. When yields reverse, it may happen quickly and violently, but for now, this rise is concerning.

Bitcoin is knocking on the door of a major breakout with $75,000 still offering stout resistance.

As I’ve recently noted, recent events have turned Bitcoin into a money magnet, prompting me to add two trades on the cryptocurrency. Both are doing well this morning.

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