Should you buy today's dip - or is it all over?

The market is sliding today after the Fed’s hint that a rate hike may be sooner than expected. Most sectors are falling today - financials are the main exception.

Sanju Verma @Sanju_Verma_

So #FOMC decides to keep rates unchanged at 0%-0.25% Interest on excess reserves raised by 5bps from 0.10% to 0.15% Inflation forecast raised by 100bps from 2.4% to 3.4%,though #Fed says long term goal is 2% No #RateHike before 2023,says Powell;In March,he said,not before 2024

Where should you look to buy the dip?

In my opinion, the overall market will rebound quickly. A potential rate hike above the 0 to 0.25% range sometime in the next two years really isn’t much of a serious threat to the markets.

However, I’d also dig deeper to find stocks that are falling but have bullish option activity.

Yesterday, I found that DraftKings fit that criteria and alerted to it in my premium newsletter. It spiked 3.5% this morning and is still one of the few stocks that’s green today.

So what’s the play this afternoon?

First, I use the Options Matrix to find potential plays.

Among momentum stocks, which are usually the best places to look for these option flow plays, I am seeing bullish activity in these names:

• Peloton PTON - Large volume in $120 calls expiring 7/30

• Snap - Large call buying in $60 to $70 calls expiring over the next few months

• Roku - Call volume is very high in $342.50 to $380 calls expiring this week