***NOTE: THERE WILL BE NO MIDWEEK VIDEO NEXT WEDNESDAY, NOVEMBER 25TH DUE TO THE THANKSGIVING HOLIDAY IN THE US***

Regarding the market’s positives and negatives, not much has changed since last Weekend’s Video. The major indexes are acting well, the Fed is on our side, and the seasonality is traditionally strong. In my view, the biggest negative right now is sentiment. Too many sentiment surveys are showing high levels of bullishness. For example, the Bank of America Global Fund Manager Survey is showing the lowest amount of cash (4.1%) since pre-Covid and the highest allocation to equities since January 2018. That doesn’t mean we can’t go higher, it just means the market is not going to make it easy for everyone. In other words, we might need to digest sideways to “wear out” some of the bullishness and we will likely see higher volatility to “shake out” some bulls. The best way to deal with this is to be patient and use smaller positions until we see more setups. There are definitely some stocks working in this environment but I’m still not seeing the number of setups I would normally like to see. I am still leaning bullish on this market. I simply recommend being patient and using lighter positions while we likely consolidate before the next leg higher. Good luck for the remainder of the week!

Unusual Option Activity:
11/18/20 Nvidia (NVDA) with 300 January 2023 $500 puts sold to open $107.50
11/18/20 Nasdaq 100 ETF (QQQ) opening sale 1000 April $295 ITM puts $20.55
11/18/20 S&P 500 ETF (SPY) December $368 calls with 50,000X being bought near $3.65 since 1:45pm as November $355 adjust
11/18/20 Tesla (TSLA) strong breakout and seeing some new positions again, the January 2023 $120 puts sell to open 2400X at $9.60 to $9.50, Dec. 11th (W) $530 calls with 3500X bought to open around $5M
11/18/20 S&P 500 ETF (SPY) with 5000 Dec. 24th (W) $365 calls opening $5.47 to $5.61
11/18/20 Consumer Discretionary ETF (XLY) nearly 15,000 January 2022 $205 calls bought $2.10 to $2.50 in opening hour, betting on a strong consumer recovery in 2021, top holdings AMZN, HD, NKE, MCD, SBUX, LOW, BKNG, TGT, TJX
11/18/20 Semiconductor ETF (SMH) with 10,970 February $185 calls opening as November $153 adjust
11/18/20 Snap (SNAP) with Dec $45 calls active today 12,000X, though in smaller lots
11/18/20 Alphabet (GOOGL) next week’s $1750/$1770 call spread being bought 1000X for 9.98, adjusting the Nov. spreads
11/18/20 Atlassian (TEAM) with 7990 January $210 calls opening $31.60 as November $190 adjust
11/18/20 Atlassian (TEAM) now also with 1200 March $200 calls bought $18.20 to $18.60 to open
11/18/20 Micron (MU) the June $57.50 puts sold to open this morning 1000X for $5.90
11/18/20 Pinterest (PINS) sweep buy 1000 Nov. 27th (W) $64 calls $2.24
11/17/20 Tesla (TSLA) afternoon buyer 1000 January 2022 $510 calls $110.55 to $112.10 to open. TSLA also 2450 February $430 calls bought to open near $72
11/17/20 Alteryx (AYX) recent software laggard with 1,477 May $150/$90 bull risk reversals opening at $0.75 debit
11/17/20 Anaplan (PLAN) 350 May $57.5 calls opening as Nov. $50 adjust, breaking out today and size in Dec $57.5 and $65 call OI
11/17/20 Advanced Micro (AMD) opening sale of 1,000 January 2023 $60 puts for $10.10, some Jan. 2022 positions adjusting
11/17/20 NovoCure (NVCR) buyer 250 March $145 calls $7.30
11/17/20 Z-Scaler (ZS) buyer of 1000 September 2021 $190 calls for $9.75 into the recent pullback, strong overall trend
11/17/20 Taiwan Semi (TSM) with 1300 February $100 calls opening $5.65 to $5.75 as April $95 look to be adjusting
11/17/20 JD.com (JD) with 500 Jan. 2022 $77.50 puts sold to open this morning for $12.13, size Feb. call buys yesterday into the dip
11/17/20 Palantir (PLTR) on the open with 2000 January $23 calls bought $1.20 and now up to 4000X with buyers $1.40 offer
11/17/20 Square (SQ) in early action buyers hot for Nov. 27th (W) $185 calls with over 3200 trading up to $5.10
11/16/20 S&P 500 ETF (SPY) January $370 block of 66,000 January $370 calls opens $6.38 as November $350 calls take profits.
11/16/20 S&P 500 ETF (SPY) Dec. 7th (W) $372 calls with 15,000X bought earlier today to open and 3500 Dec. 21st (W) $340 calls opening for $8.5M
11/16/20 Acadia Pharma (ACAD) buyers 2800 March $65 calls $3.50 to $3.80 aggressive
11/16/20 Alibaba (BABA) buyers 3000 June 2022 $280/$450 call spreads
11/16/20 Zillow (Z) with 2,000 January 2023 $70 puts sold to open for $13
11/16/20 Snowflake (SNOW) IV jumped with 1775 Nov. 27th (W) $250 calls opening into weakness, being bought $5+
11/16/20 Pinterest (PINS) with 5,000 May $55 calls bought for $15.35 as the November $28 calls roll
11/16/20 Pinterest (PINS) also 20,000 December $32 calls adjust to May $55 calls
11/16/20 Russell 2000 ETF (IWM) leading the rally with Bank/Energy exposure and 42,500 Dec. 31st (Q) $185 calls bought $2.74 and 21,250 of the $190 calls sold $1.47
11/16/20 Workday (WDAY) with 1200 January $230 calls bought $12.82 as Dec. $210 start to adjust ahead of earnings
11/16/20 Tower Semi (TSEM) with 1500 December $24 calls bought for $0.95 and 850 January $24 calls bought $1.30 to open, some recent April bull spreads opened
11/16/20 Tower Semi (TSEM) now with another 1500 December $24 calls bought $0.85
11/16/20 Atlassian (TEAM) buyer 3000 March $170 calls $33.62 as Dec. $150 adjust, similar to large Tech adjustments to March last week
11/16/20 Taiwan Semi (TSM) with 3500 Dec. 4th (W) $110 calls opening as Nov. $96 adjust
11/16/20 Taiwan Semi (TSM) also 1200 April $115 calls bought $3.80 to $4
11/16/20 Fastly (FSLY) buyer 1200 January $85 calls aggressive at $5.30 offer, also trading January $110/$120 call spreads
11/16/20 Rocket Co (RKT) with 5,000 December 4th (W) $24 calls bought from $1 to $1.13
11/16/20 Advanced Micro (AMD) buyer 6000 Nov. 27th (W) $81 calls $2.45 early after the Cleveland Research upgrade

Topics covered:
1) 0:00 Announcements
2) 0:50 Market Commentary and Index Review (Nasdaq Composite, S&P 500, and Russell 2000)
3) 7:40 Stock Review – Mega Caps: AMZN, AAPL, MSFT, ADBE, CRM, TSLA
4) 11:40 Stock Review – Semiconductors: NVDA, AMD, LSCC, MRVL, MTSI, SMH (ETF)
5) 15:30 Stock Review – Software: NOW, ZEN, NET, FIVN, BL, FSLY, CRWD, ZS, OKTA
6) 19:20 Stock Review – General Ideas/Commentary: PENN, DKNG, PSNL, NVCR, JD, LAD, SQ, NVTA, SNAP, AAXN
7) 24:10 Current Setups – AMD, MRVL, SMH (ETF), BLDR, SNAP
8) 26:05 Conclusion/Summary