Pinned Tweet
$500,000 is the number
Once you have that much in a brokerage you can product $7,500-$10,000 a month in option income.
Thats taking into account 2-4 trades a month at low deltas & minimal effort.
Then life goes on easy mode.
🚨 BREAKING NEWS 🚨
THE SKY IS FALLING.
ALL STOCKS ARE GOING TO ZERO.
THE STOCK MARKET IS OFFICIALLY CANCELLED.
YOUR 401(K) IS NOW A 201(K).
SELL EVERYTHING. BUY CANNED BEANS.
WE WILL NEVER SEE A GREEN DAY AGAIN.
See you all at market open tomorrow. 🫡
$GOOGL just had its worst day ever, and the market is now pricing AI cash burn, not AI promises.
Alphabet lost about $500 billion in value after posting negative free cash flow of $9.07 billion while holding capex guidance at $195 to $205 billion.
Underneath, most S&P 500 stocks actually rose and small caps rallied, while yields dipped after Q3 GDP came in hot at 3.4% and PCE inflation hit 3.6%.
THE CLOSE
S&P 500 -0.3%, Nasdaq -1.4%, Dow -0.3%
10Y just under 5%, WTI $102.00 (-0.8%), Brent $114.88 (-0.4%)
WHAT MOVED
$GOOGL -12.6%, its largest one-day drop on record, on a revenue miss and heavier AI cash burn
$NOW down more than 20% after results, leading a broad software selloff
$AMZN down more than 7% after hours on EPS and ad revenue misses, with capex still at $220B
$INTC down about 17% after hours as a weak Q4 outlook overshadowed an earnings beat
THE REAL RISK
Inflation is running at 3.6% with oil above $100, and traders are still betting on a December Fed hike. If hyperscaler spending stops being rewarded, the market loses the leaders it has relied on.
NEXT UP
Friday brings the open's reaction to Amazon and Intel, Exxon and Chevron earnings, AbbVie, the Q3 Employment Cost Index at 8:30am ET, and Chicago PMI. Apple reports Monday, Nov 2.
Follow the volume, not the noise
Options Flow - Top by Volume
1. $SPY 528.4K (C 200.4K / P 328.0K)
2. $QQQ 482.2K (C 153.6K / P 328.5K)
3. $GOOGL 337.4K (C 195.4K / P 142.0K)
4. $IWM 320.0K (C 108.4K / P 211.5K)
5. $AMZN 263.4K (C 164.6K / P 98.8K)
6. $INTC 196.6K (C 104.9K / P 91.6K)
7. $PAA 189.7K (C 189.7K / P 0.0K)
8. $NVDA 182.7K (C 88.8K / P 93.9K)
9. $PAGP 176.4K (C 176.4K / P 0.0K)
10. $NFLX 165.0K (C 45.5K / P 119.6K)
Well this is a delightful notification after running $75,000 through this card, I finally got an increase!
Did anyone else get one of these notifications? $HOOD
Welp, got stopped out on $NOW over night.
You win some you lose some.
On to the next one!
Everyone wants financial freedom.
Very few people want the boring process that actually builds it.
Buying quality businesses.
Collecting dividends.
Selling options responsibly.
Reinvesting profits.
Repeating for years.
Building wealth doesn't always need to be exciting.
Daily Naked Trade Idea - HOOD
Spot ~$90.03
Trade: Sell HOOD Nov 13 $75 put @ ~$0.39 (delta ~0.07)
Premium collected: ~$39 per contract
Buying power used (Tasty margin estimate): ~$751 per contract
Return on BP: 5.2% in 15 days
Effective cost if assigned: $74.61
Strike sits about 16.7% below spot, under the August low near $85 and just above the May base around $73, and earnings are already out (Oct 27), so none before expiry.
Digging into $MSFT report
Pros
1. Azure accelerated to 48% growth ($33.2B), beating the 44% to 45% guide and up from 42%.
2. Microsoft beat on every line. EPS was $4.89 against $4.73, revenue was $92.28B against $90.69B, and both segments came in above their guides.
3. Margins expanded during the AI buildout: a 49.8% operating margin, opex under the guide and headcount down 2%.
Cons
1. Bookings stalled. Commercial bookings fell 12%, the $677B backlog was flat with last quarter, and Microsoft 365 seat growth slowed to 5%.
2. Free cash flow fell 27% to $18.6B as cash capex doubled. Capex coming in under the guide could be a supply-timing issue, which the call should clarify.
3. Consumer is weak: Windows OEM fell 22%, Xbox hardware fell 14%, and the gross margin slipped to 68%.
Looking deeper into this $GOOGL selloff
Q3: Pros vs Cons
Pros:
-Cloud revenue grew 103% to $30.7B, about $2B over consensus.
-Cloud's margin hit 36.2%, against about 33.5% expected, and Cloud operating income tripled to $11.1B.
-AI is scaling: the Gemini app has 1B users, API tokens are up more than 4x, and Search query growth is at a five-year high.
Cons:
-The core ad business missed across the board. Search was $63.4B against $65.0B and about flat with Q2, and YouTube and subscriptions also missed.
-EPS was $2.12 against $3.02, or about $2.67 without the equity loss, and the operating margin fell to 31.8% from 34% in Q2.
-Cash is tight. Free cash flow was negative $9.1B, there were no buybacks, Alphabet sold $12.4B of stock, and debt is $125B.



