Week Ending 8/18/2024

This past week was fairly uneventful with a few exceptions which with all of the recent volatility it is refreshing to have a week that allowed investors to catch their breath. Both the S&P and the Nasdaq closed Friday in the green which solidified a 7 day green streak. All sectors were green this week with financials, tech and consumer discretionary leading the way. It seems that the market is still expecting at least a 25 bps cut in September and is currently pricing in a chance for a 50 bps cut. Our position on IWM calls still holds true. We will hear the July FOMC on Wednesday which may draw some volatility, but likely not much. August flash PMIs are Thursday and Powells Jackson Hole speech on Friday. We will tune in and update next week if needed.

Julys inflation print was a major highlight of this past week as CPI numbers for July came in at slightly lower than expectations.

Perhaps the main story of the past week was CMG CEO Brian Niccol announced he was leaving Chipotle and headed to SBUX and will assume this role starting September 9th. Their current CEO Laxman Narasimhan will step down as he has not been great for their leadership, but I believe he deserves praise for spearheading their push to promote mobile ordering. SBUX was up nearly 25% from the announcement as investors are optimistic for Niccols leadership. Under Niccols leadership CMG has gained nearly 800%. Does SBUX have 775% to go?

ASTS also had a good week and made plenty of Degens money. With the stock being up nearly 50% for the week and 150% for the past month we will definitely be keeping a close eye on this one. They are set to have their first satellite launch in September which if successful could take the stock price with is. For those who are like the rest of us and are wondering what this company does or is supposed to do well they are a satellite company that is working with companies like VZ and other service providers to launch satellites into space and bridge connection gaps to achieve greater smartphone connectivity.

Degen Play: 9/27 ASTS 40 calls

WMT also had a good week reporting positive earnings. The company is seeing direct proof from their GenAI push as a way to save company funds. There is not much to say about WMT other than it will always be around and will continue to have a slow growth. It is a good stock for us Deigns to have to balance out the unnecessary risk we take week to week on risky options.

If you tailed our plays last week you would have done well. NVDA(17%) had a strong week and I believe will continue to rise all the way through earnings so we are not going to close out out positions yet. BABA(3%) of course let us down, but we don’t cry over spilled milk here.

As earnings continue into this next week there is plenty of money to be made and some little degenerate out there is going to make it so why not you?

I am extremely bullish on CAVA and believe that it will be a long term stock that will grow similar to the way CMG did and I think I am going to test that theory with their earnings this Thursday and walk into Friday with a pocket full of sunshine. I expect them to check all boxes and beat expectations.

Degen Plays: PANW and CAVA calls

ZM puts

We are going simple this week due to the conviction I have that CAVA will be a real winner for us this week.

Thanks for reading, best of luck and that’s all for now folks.