The positives continue to outweigh the negatives in this market. The leaders are acting well, the major indexes are still above key levels, the Fed is on our side, and there’s very little distribution. The major thing that stuck out to me while going over my screens tonight was that many of the leaders are pulling back on super light volume. This is a positive sign because it’s showing very little selling. One minor negative is the distribution in the Nasdaq Composite around the 10,800 level. The index reversed off this level on Monday 7/13 and again this week on Tuesday 7/21. However, while some money moved out of the Nasdaq recently, it rotated into other sectors, as seen by the accumulation in the S&P 500, Dow Jones Industrial Average, and Russell 2000. This sector rotation makes shorting the indexes very difficult, especially for a sustained move down. Another negative is the upcoming seasonality as (short-term) the end of the month tends to see some profit taking and (medium-term) August and September are traditionally two of the weakest months of the year. I’m not going to stress over this and continue to monitor the price action day-by-day. I will also continue my strategy of taking profits into strength and having some cash available for the pullbacks. Good luck for the remainder of this week!

Unusual Option Activity:
7/22/20 Spotify (SPOT) afternoon buyer of 400 January 2022 $330 calls to open at $63, $2.5M purchase
7/22/20 Crowd-Strike (CRWD) with 350 March $90 puts sold to open $12.05, popular strategy with the name
7/22/20 DataDog (DDOG) 1000 Aug 7th (W) $90/$95 call spreads bought
7/21/20 Advanced Micro (AMD) buyer 2500 August $59 calls here $4.50 offer and now up to 4500X with a buy at $4.55
7/21/20 Staar Surgical (STAA) sellers of 1000 OTM August $45 puts today
7/20/20 Cloudflare (NET) with 470 January 2022 $45 puts being sold to open down to $16.30, deep ITM, also seeing 325 of the $45 calls bought
7/20/20 Twilio (TWLO) 400 Aug 14th (W) $260 calls opening $23.20 to $24.75
7/20/20 Arcturus (ARCT) interesting spreads today are buying 200 March 2021 $50 calls for $22.47 and selling 200 August $60 puts for $9.97 to open, B Riley recently with a $70 PT positive on the progress they’ve made with their five whollly owned programs
7/20/20 DocuSign (DOCU) buyer 1000 August $202.50 calls here $13.45 to $14.25 after hot action last week
7/20/20 Crowd-Strike (CRWD) with 1,400 January $105 calls bought $17.50 to $17.80 into the modest pullback from 52-week highs
7/20/20 Crowd-Strike (CRWD) also 200 March $95 puts sold to open $14.20
7/20/20 DexCom (DXCM) with 200 September $460 calls opening $28.10, and 400 Jan $500 calls bought $38

Topics covered:
1) 0:00 Announcements
2) 0:25 Market Commentary and Index Review
3) 6:20 Stock Review – Leaders: NFLX, COUP, DDOG, DXCM, ZS, OKTA, HACK (ETF), DT, BTAI
4) 12:35 Stock Review – General Ideas/Commentary: MTH, STMP, SFM, ARCT, AXSM, FLGT, TNDM
5) 17:30 Stock Review – Semiconductors: SMH (ETF), NVDA, KLAC, AMD, QRVO, SWKS, MKSI
6) 20:45 Current Setups – DT, STAA, TXAC, QRVO
7) 24:00 Conclusion/Summary