An Uncontainable Small Pullback
Last week's price target was 700, and this week's target has already become 800.
Theoretically, if Muse integrates more functions and participates in more work applications that require privacy authorization, the stock's upside ceiling will rise even further. This round of Muse's marketing has been extremely successful, precisely capturing user pain points, which is why it ranked #2 on the app download charts in its first week. I think it's not impossible for the stock to have an even higher ceiling — closely monitor Muse's feature updates going forward.
For a conservative bullish strategy ahead of earnings, Sell Put is fine. For the strike price, consider 700 $META 20261002 700.0 PUT$. The only problem is the stock is too expensive and the margin requirement is too high.
Judging from today's market action and the pullback in bank stocks, late September was supposed to be a shakeout period — but unfortunately, the rhythm was completely disrupted by the Muse launch.
The result is a terrifying situation that looks like a "last meal" for semiconductors: only semiconductors are rallying strongly, while other sectors and small-caps are pulling back.
It now appears the semiconductor surge has been interrupted by Michael Burry's large short block trades — which may well be institutions taking the opportunity to step back gracefully. In any case, before October, selling puts on dips is more stable. Consider selling the 110 Put $INTC 20261002 110.0 PUT$.
A December-expiry 200 Put block trade opened $NVDA 20261218 200.0 PUT$ . A short-term pullback to 210 cannot be ruled out. 235 is a fairly clear overhead resistance — if you hold the stock, you can sell near-term Covered Calls.
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