***THE NEXT MARKET VIDEO WILL BE POSTED BY SUNDAY, OCTOBER 18th AT 9AM EST. THANK YOU***

The market continues to act well. We had a surprisingly strong day on Monday and it ended up being a “Follow Through Day” (FTD) for the Nasdaq Composite. This FTD wasn’t necessary to confirm a new uptrend because the Dow Jones Industrial Average already had one on 9/30/20. Also, so many stocks were setting up and breaking out. Nevertheless, it was nice to see the strength on Monday and then two lighter and lighter volume consolidation days on Tuesday and Wednesday. From here, I wouldn’t be surprised to see the market continue sideways and digest its recent gains. This is where I encourage members to make decisions based on your own timeframe. If you are a shorter-term trader, there’s nothing wrong with locking in some gains. I reduced so far this week from 80-90% invested down to 60-70% invested. Basically, I am still bullish but would like to have some cash in case we pullback. If you are a longer-term investor, at least I provided you with strong entry points and you have a cushion if the market backs and fills over the near-term. Good luck for the remainder of the week!

Unusual Option Activity:
10/14/20 Twitter (TWTR) late day opening sale 1500 July 2021 $40 puts for $5.25
10/14/20 Taiwan Semi (TSM) with 4000 January 2022 $60 puts sold to open for $4.85
10/14/20 Taiwan Semi (TSM) with 2775 Oct. 30th (W) $93 calls bought to open today $1.94 to $2.35, also earlier 4600 of the Nov. $100 calls sold to open
10/14/20 Adobe (ADBE) 1000 Nov $555 calls with buyers $7.60 to $8
10/14/20 MasterCard (MA) 250 Apr $320 puts sold $20.20 to open
10/14/20 PayPal (PYPL) April $200 calls that saw size additions yesterday trading another 3500X today near $27.85 as stock replacements
10/14/20 Tesla (TSLA) relative strength versus the market all session with buyers active in November $475 calls 900X for around $3.6M, also a buyer of 1000 June 2021 $392 calls to open $134.95 as Jan $340 adjust
10/14/20 Twitter (TWTR) 2500 Nov 13th (W) $38 puts sell to open $0.66
10/14/20 Apple (AAPL) trading 33,000 Oct. 30th (W) $135 calls in the opening two hours with 14,700 in OI and captures the 10-29 earnings report, buyer flow
10/14/20 Farfetch (FTCH) buyer 1100 November $34 calls for $1.38
10/14/20 Farfetch (FTCH) also with 500 far OTM April $40 calls bought $2.78
10/14/20 DocuSign (DOCU) with 1000 Oct. 23rd (W) $260 calls bought $3.15 to open
10/14/20 Microsoft (MSFT) 1500 Nov. 6th (W) $225 calls bought to open $6.60 as Oct. 30th (W) adjust
10/13/20 Coupa (COUP) with November $320 calls active today with 800 opening for over $1M
10/13/20 Twilio (TWLO) this afternoon seeing 300 January 2023 $150 puts sold to open for $14 to $13.95
10/13/20 Atlassian (TEAM) with 1000 November $210/$220 call spreads opening
10/13/20 Nasdaq 100 ETF (QQQ) March $310 calls trading 12,700X with buyers active $16.26 to $18 and look to add to 10,721 in OI, a spot where 5K opened on 9/25
10/13/20 Beyond Meat (BYND) seeing 800 Jan. 2023 $290 max strike calls bought to open $48 to $49 today
10/13/20 Visa (V) with 1400 Oct. 30th (W) $200 calls opening $7.60 to $7.70 today
10/13/20 Sea Limited (SE) with 500 October 30th (W) $182.5 calls bought for $2.85, a lot of bullish flow into that expiration lately for the name
10/13/20 Twitter (TWTR) with 2000 November $50/$65 call spreads bought into the early low for $2.51
10/13/20 Cloudflare (NET) with 700 May $70 calls bought from $6.52 to $6.80 today, some $50 calls adjusting higher into strength
10/13/20 Tesla (TSLA) with 2200 Oct. 23rd (W) $455 calls opening for $4.2M, earnings 10-21, rolling from October $55
10/13/20 Invitae (NVTA) with 750 November $60 calls bought $3.20 to open this morning
10/13/20 PayPal (PYPL) Dec 200/210 call spreads active 1900X
10/12/20 Netflix (NFLX) with 500 July 2021 $560 calls opening for $4.35M as December $560 adjust
10/12/20 Arcturus Therapeutic (ARCT) buyer 500 November $55/$70 call spreads as October calls adjusted
10/12/20 Alibaba (BABA) with 1500 October 2021 $280 calls opening today for $10M
10/12/20 NASDAQ 100 ETF (QQQ) buyer 10,000 December 2022 $450 calls $6.19, needs NASDAQ to return around 55% over next two years, though obviously does not need to hold until expiration
10/12/20 Dynatrace (DT) with 500 November $43 calls bought $3.50 to $3.80
10/12/20 Google (GOOGL) Oct 23rd (W) $1600 calls active buyers 2000X and some spread vs. $1650
10/12/20 Palantir (PLTR) the November $9 ITM calls being bought 2450X today for $1.50 to $1.55, active name last week with call buyers as far out as May
10/12/20 SOFTWARE STOCKS – Okta (OKTA) January 2022 $240 calls 390X, Mondo-DB (MDB) Jan. 2022 $270 calls 365X, Service-Now (NOW) Jan. 2022 $540 calls 200X, and Alteryx (AYX) Jan. 2022 $150 calls 300X all with $1M to $2M opens as Jan. 2021 calls adjust
10/12/20 Pinterest (PINS) buyer 5000 November $50/$65 call spreads for $2.23
10/12/20 Stamps.com (STMP) with smaller but high-dollar buys today in the January $300 calls with over 650 trading from $33.70 to $33.80, more than $2.15M. STMP doesn’t draw a lot of notable flows with the options market rather thin but does have some January 2022 $330 calls in OI from July as well as some November $270 short calls from 9/29 that were likely a stock overwrite strategy.
10/12/20 ThermoFisher (TMO) with the November $440 calls bought 650X today between $31.85 and $36.50, the October $430 calls rolling from 9/22 buys
10/12/20 Adobe Systems (ADBE) with 400 December $440 puts sold to open for $10.61
10/12/20 Nio (NIO) with sellers of 1,500 May $17 puts today for $3.55 and follows sellers in the May $19 and $20 puts on Friday as well as the November $25 puts sold 2000X. NIO sees a lot of action daily and notable flows recently include buyers in the February $21 calls, May $15 calls, and Jan. 2022 $35 OTM calls. NIO also has drawn other put sellers lately including the May $21 puts and February $16 puts.
10/12/20 Microsoft (MSFT) buyers of 7500 Oct. 30th (W) $225/$235 call spreads to capture earnings
10/12/20 Microsoft (MSFT) also with 1900 Apr $270 OTM calls bought $5.55 to $5.65
10/12/20 Pinduoduo (PDD) with 450 November 27th (W) ITM $95 puts sold to open today between $16.95 and $14.80 with earnings expected around 11/20
10/12/20 DraftKings (DKNG) recent pullback and share offering seeing a confident trade here sell 1000 May $50 puts to open for $12.60
10/12/20 PayPal (PYPL) seeing 4000 November $170 puts sold to buy the $200/$220 call spreads, earnings 11-2
10/12/20 PayPal (PYPL) also seeing March $200 calls bought 1500X near $22.50
10/12/20 JD.com (JD) the December $85 calls bought 2,000X for $5.64 today, rolling up the $75 calls into strength; earnings and Singles Day in mid-November
10/12/20 Semiconductor ETF (SMH) with 8000 January $195 calls opening $9.90 as the $170 calls adjust, recent positive guidance and M&A across the group
10/12/20 Advanced Micro (AMD) buyer of 1000 October 30th (W) $92 calls for $2.19, positioning for earnings which should be around 10-27
10/12/20 Lululemon (LULU) with 835 Nov. 6th (W) $350 calls bought, spread mostly with $360 calls
10/12/20 Tesla (TSLA) with 8000 June $640 calls opening for $44M as February $520 calls bought on 9/4 adjust
10/12/20 Twitter (TWTR) 2500 next week $52 OTM calls early bought w/ the upgrade
10/9/20 Alphabet (GOOGL) buyer of 2,200 October 23rd (W) $1500/$1550 call spreads for $20
10/9/20 MasterCard (MA) opening sale of 1,100 April $290 puts for $10.60/$10.65

Topics covered:
1) 0:00 Announcements
2) 0:50 Market Commentary and Index Review (Nasdaq Composite, S&P 500, Russell 2000)
3) 10:30 NEW FOCUS LIST – AMZN, MSFT, ADBE, AAPL, CRM, QQQ (ETF), CRWD, ZS, OKTA, VEEV, NOW, TSLA, Z, MA, SQ, NVDA, ZM, SGEN, TXG, GH, NVTA, ADPT, ARKG (ETF)
4) 21:50 Stock Review – Software: FSLY, DDOG, FVRR
5) 27:00 Stock Review – Housing: DHI, KBH, LEN, LGIH, MTH, XHB (ETF), ITB (ETF)
6) 28:20 General Ideas/Commentary: NFLX, PYPL, SHOP, WDAY, MRVL, NIO, TWST, CHGG, AAWW, FDX, UPS, CCXI
7) 33:05 Current Setups – PYPL, Z, ITB (ETF)
8) 33:50 Conclusion/Summary