I always like keep an open mind with my approach to the market. I look at the positives and the negatives and adjust my investment levels accordingly. The biggest positive is that the major indexes are acting very well. They are above their key moving averages, there’s very little distribution, and the overall price action is tight. One negative last week is that many of the leaders pulled back beneath the surface but 1) It occurred on light volume and 2) Many leaders were technically extended and needed to correct. The other negatives include the upcoming election uncertainty and the high bullish sentiment. I’m surprised that many sentiment measures are showing complacency considering 1) The recent 9-day market pullback and 2) The upcoming election. Conclusion from all this: Keep positions light until we get more clarity. As always, the decisions you make should be based on your own timeframe, risk tolerance, and investment objectives. Personally, one of my objectives is to protect gains for clients. I am having a strong year and will likely remain 20-50% invested ahead of the election. If the market runs a little bit without me, I don’t mind. Again, this decision is based on my own objective. You need to make your decision on how to position ahead of the election based on your timeframe.

Overall, I’m positive on the markets once we get the election uncertainty out of the way. I think the Fed is more important to the markets than who is President. Again, I will always lean towards patience and defense for members until we get a clearer picture. Enjoy the rest of your weekend and see you on Sunday, October 25th at 11AM EST for the next webinar.

Unusual Option Activity:
10/23/20 Beyond Meat (BYND) the December $170 calls bought 1000X for $18.65 to $19.80 into the recent pullback
10/23/20 MongoDb (MDB) with 1,000 January 2023 $185 puts sold to open for $34.70
10/23/20 Zillow (Z) seeing 4,000 Nov. 6th (W) $113 short calls close and adjust up to 3,000 of the $115 calls for $1.22 today, bought in ratio spreads with the $101 calls last week for 11-5 earnings
10/23/20 Pinduoduo (PDD) opening sales of 400 ITM Nov. 27th (W) $100 puts for $16.50, earnings expected around 11-20
10/23/20 Square (SQ) with 425 January 2022 $140 puts sold to open for $21.75 in a stock replacement, around $965K
10/23/20 Lennar (LEN) with the December $65 puts sold to open this afternoon for $1.30, over 4950X
10/23/20 Alphabet (GOOGL) with 1,000 December $1,650 calls bought today around $81.75 as the November $1,550 calls adjust up and out
10/23/20 ChemoCentryx (CCXI) with 500 November $70/$90 call spreads bought for $3.75, follows the $70/$95 call spreads bought in size yesterday and hearing that HS data could be on Monday
10/22/20 Zoom (ZM) late trades buying 1000 June 2021 $740 calls $53.50 to $54.90
10/22/20 GoodRx (GDRX) with 1,325 November $55 calls bought for $3.80 to $4.20
10/22/20 Wayfair (W) with 1000 Jan. 2023 $250/$130 bull put spreads opening
10/22/20 Apple (AAPL) size lot bought 1500 Nov. 6th (W) $111 calls earlier at $7.06, captures earnings 10-29.
10/22/20 Lululemon (LULU) pulled back to lower Bollinger Band and seeing 700 Oct. 30th (W) $322.5 calls bought $5.25 to $5.35 to open
10/22/20 Snowflake (SNOW) on highs and IV rising as calls heat up, the Oct. 30th (W) $300 calls 1100X opening, the Nov. 6th (W) $300 calls 1400X, and Nov. $350 calls 1475X, mostly smaller lots
10/22/20 Snowflake (SNOW) with 625 February $300 calls bought for $30 to $33
10/22/20 Cerence (CRNC) with 500 December $70 calls bought today between $3.50 and $3.70, breaking out of a multi-week range
10/22/20 ChemoCentryx (CCXI) buyer 5000 November $70/$95 call spreads to open $3.50
CCXI note the spread likely positioning for Hidradenitis Suppurativa data for avacopan, expected soon, most likely before earnings on 11-2
10/22/20 Tesla (TSLA) seeing a lot of weekly calls adjust and open 1300 Dec. $435 calls, 1200 Jan. $425 calls, and 1400 Jan. $435 calls for over $21M net
10/22/20 Nvidia (NVDA) seeing more sellers in March $455 puts with 1700X trading for $5M premium
10/22/20 NASDAQ 100 ETF (QQQ) spread buys 5000 September 2021 $290 calls $27.76 and sells 6000 of the $330 calls $12.08
10/22/20 Sea Limited (SE) opening sale 1500 Jan. 2022 $120 puts $17
10/22/20 Netflix (NFLX) with 1275 Jan. 2022 $325 puts being sold to open today for over $3M in premium
10/22/20 Zoom (ZM) bouncing off 21 MA and seeing 1150 Nov. 6th (W) $525 calls open at $26
10/22/20 Rocket (RKT) Oct. 30th (W) calls hot again today with the $21 and $22 calls trading 5000X and 3700X respectively
10/22/20 Dollar General (DG) buyer 775 November $217.5/$227.5 call spreads this morning, shares pulling back to the 21 MA
10/22/20 Chipotle (CMG) into weakness after the December puts closed seeing 300 Dec. $1240 calls open $100 to $103
10/22/20 DR Horton (DHI) with 650 December $80 calls bought $2.10 to $2.24 today, pulling back to trend support and has been a solid name all year
10/22/20 Farfetch (FTCH) relative strength again and 500 Jan. 2022 $40 calls bought $6.78
10/22/20 Snap (SNAP) strong again and 2000 January 2022 $50 calls bought $4.85 to $5.15 in early action
10/21/20 Google (GOOG) buyer 700 January $1700 calls $66.55 to $71.50 as the $1500 calls adjusted
10/21/20 Apple (AAPL) afternoon buyers of 4000 Nov. 27th (W) $110/$120 call spreads

Topics covered:
1) 0:00 Announcements
2) 0:30 Market Commentary and Index Review (Nasdaq Composite, S&P 500 and Russell 2000)
3) 14:40 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 – Mega Caps: NFLX, FB, SHOP, PYPL
5) 24:25 Stock Review – Software: COUP, DT, FIVN, TEAM, WDAY, ZEN
6) 26:00 General Ideas/Commentary: CRNC, SNAP, PINS, FTCH, AMD, TSM, BABA, JD, PDD, CHGG, ETSY
7) 30:00 Current Setups – MSFT, NVDA, CTLT, MTCH, STMP, SGMS
8) 32:00 Conclusion/Summary