Quadruple Witching of Eastwick to Kick Off Summer Trading

via Investopedia.com

Quadruple witching refers to an expiration date that includes stock index futures, stock index options, stock options and single stock futures. While stock options contracts and index options expire on the third Friday of every month, all four asset classes expire simultaneously on the third Friday of March, June, September and December.

With the Fed event now behind us, we have some macro data points like GDP standing in between now and the July 4th holiday. 

On this Quad Witching Friday, stocks have a scattered feel to them even within sectors.

As an example, the SMH (sector ETF) for chips, looks to be in pullback mode and may not be done going down, with large cap chips INTC QCOM TXN all soft. But, as we noted earlier, the opticals are strong, such as FNSR LITE OCLR VIAV. And AAOI and NVDA are hanging tough as two momentum monsters staging light pullbacks. 

My main focus here is on tightening up my watchlists for the very best long and short ideas headed into the back half of June. I suspect two-way trading will be a theme, where select longs and shorts can work well if the indices are landlocked--Look no further than the IWM (Russell 2000 Index ETF) back inside its massive range since late-last year. 

The other theme, of course, is the pin action off the AMZN for WFM buyout. I honored my stop-loss around $34 yesterday on a WFM long when it got hit off both the Kroger and Nasdaq weakness (WFM is listed on the Nazzy). Such is life as a speculator, though, where timing down to the exact day can be critical.

Still, there ought to be some worthwhile plays which can continue to benefit from AMZN's interest in grocery stores. PI is one name to observe. But beyond grocers we have a few ideas which I will run through for Members in a Midday Video to take us into the weekend.