THE MORNING MOMENTUM
Friday, June 26, 2026 — Options Expiration Edition
🌅 PRE-MARKET SNAPSHOT
Futures pointed higher early this morning but don't be fooled — equity premarket tells a different story. Asian markets sold off hard overnight as Samsung and SK Hynix both dropped ~10%, triggering South Korea's market circuit breakers. That contagion is hitting U.S. semis hard despite Micron's historic earnings beat Wednesday night.
Index | Premarket | Change |
|---|---|---|
SPY | $729.51 | ↓ -0.65% |
QQQ | $707.74 | ↓ -1.2% |
📰 WHAT YOU NEED TO KNOW
MU earnings were historic — and the stock is still getting hit. Micron reported revenue of $41.46B last quarter, more than quadrupling from $9.3B a year ago, and guided next quarter to $50B. By any measure, a blowout. Yet MU is trading down ~5% premarket at $1,151 vs yesterday's close of $1,213. Why? Because Samsung and SK Hynix cratered overnight, spooking the entire memory sector. This is a classic "sell the news meets macro fear" setup — not a fundamental story.
PCE came in hot. The Fed's preferred inflation gauge printed at 4.1% annually — the highest reading in months. Rate cut hopes just got pushed further out. This is the real headwind for growth stocks today, and it's why the QQQ is underperforming SPY this morning.
Apple and Microsoft both announced price hikes this week. AAPL dropped 6% Thursday after raising MacBook and iPad prices. MSFT is actually bouncing slightly premarket after its own Xbox price hike news was already priced in. The theme: tariff and memory shortage costs are getting passed to consumers.
It's OpEx Friday. Options expiring today create extra volatility, particularly in names like HOOD, BMNR, and semis. Expect choppy price action especially in the first 30 minutes.
🎯 MOMENTUM PLAYS TO WATCH
MU — Dip or Trap?
The earnings print was undeniable. $41.46B revenue, $50B guided. But Asian chip contagion has it down 5% premarket. If you believe in the AI memory cycle — and the numbers say you should — this pullback is noise. Watch the $1,100 level as support. A hold there into the open sets up a bounce trade. Risk: broader semi weakness could push it lower before it finds footing.
AMAT & LRCX — Collateral Damage
Both down 3%+ premarket on no company-specific news. Pure sector contagion from Asia. These are high-quality names getting dragged down with the tide. Same playbook as MU — watch for stabilization in the first 30 minutes before chasing.
MSFT — Quietly Bouncing
While AAPL is still digesting its 6% drop, MSFT is up ~1% premarket at $356. It's still in a downtrend from its June highs but this is a name worth watching for a technical bounce. Not a momentum play today — more of a "is the bottom in" watch.
SPCX — SpaceX Starlink Catalyst
Fresh reports this morning that Starlink is eyeing entry into the U.S. mobile market. SPCX is down ~1.7% premarket at $150 but the long-term story just got a new chapter. If you're holding conviction, this dip is your friend.
📋 COVERED CALL OPPORTUNITY OF THE WEEK
With OpEx clearing the board today, next week is a fresh start for premium selling. Top candidates to watch:
UNH — ~$415
Stable, barely moving in a sea of red. Healthcare tends to hold up when tech sells off. A July $425 or $430 call offers solid premium with room for upside. Good timing to initiate.
BMNR — ~$13.22
Volatility creates premium. With the stock range-bound, a July $14 or $14.50 covered call gives you upside room while collecting income. Don't leave this one unworked next week.
HOOD — ~$92.50
Still one of the stronger names in the market despite premarket weakness. If you got called out today, consider re-entering on a dip. A July $95 or $97 call could generate nice premium with momentum behind it.
⚠️ TRADER'S NOTE — ACTION REQUIRED AT 9:30
If you're holding BMNR options expiring today, the first two trades at the open are your priority before anything else. Get those handled before looking at anything else on the board.
The Morning Momentum is for informational purposes only. Not financial advice. Trade responsibly.
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