Topics covered:
1) 0:00 Announcements
2) 0:45 Market Commentary and Index Review (Nasdaq Composite, S&P 500, and Russell 2000)
3) 8:00 Stock Review – Mega Caps: AMZN, MSFT, AAPL, NVDA, TSLA, SHOP, NFLX, QQQ (ETF)
4) 12:00 Stock Review – Software: CRWD, ZS, OKTA, SAIL, FVRR
5) 13:45 Stock Review – Semiconductors: AMD, AEIS, ACMR, MTSI, UCTT, TSEM, COHU, SMH (ETF)
6) 17:10 Stock Review – Medical Products/Biotech: CSTL, NVCR, RCKT, CDNA, NARI, FLGT, INMD
7) 22:10 Stock Review – General Ideas/Commentary: SQ, LAD, X, FND, CHGG, REGI, CRNC, CALX, Z, TTD
8) 27:20 Current Setups – FORM, HALO
9) 30:10 Conclusion/Summary

Market Summary:
The Nasdaq has seen 5 distribution days in the past 12 days. That doesn’t mean the market has to drop. It is simply something to keep an eye on in case we see further distribution. While the Nasdaq has stalled recently, the Dow Jones, Russell 2000, and S&P 500 are all making new highs. This is clearly a result of sector rotation, which is normal and healthy in a Bull Market. I wouldn’t necessarily forget about tech. I just think that many FAANG names and software stocks became too over-owned and they need time to wear out the hot money. While this is happening, I’m noticing strength in other growth sectors such as Semiconductors, Medical Products, Biotech, and Retail.

Whenever there is added volatility during the trading day, it is easy for our emotions to rise and this can lead us to overreact at times. My best advice is to reduce your emotions and turn off the news. One of the biggest mistakes traders made in 2020 was being affected too much by the news and they didn’t pay enough attention to price. If this happened to you, don’t make the same mistake in 2021! All the major indexes are still holding their 21-day moving averages. Of course we will see shakeouts and corrections along the way, but don’t lose sight of the bigger picture. The technicals are strong and the Fed is on our side. As always, know your own timeframe, but if the volatility is too much for you, then reduce your position size. I am trying to promote calm trading through this product. If you can’t learn how to reduce your emotions, you will never make progress as a trader. You will end up making too many poor and emotional decisions. This is just a reminder to stay mentally tough and focus more on the price action. Good luck for the remainder of the week!

Unusual Option Activity
1/6/21 Taiwan Semi (TSM) size buyers 3000 July $120 calls $10.20 to $10.25 with 3700 already in OI
1/6/21 Taiwan Semi (TSM) also seeing Jan. 29th (W) $130 calls with 3000 opening $1.14
1/6/21 Fate Therapeutics (FATE) the August $60 puts sold to open this afternoon for $10.60 to $10.55, over 745X
1/6/21 S&P 500 ETF (SPY) Jan 29th (W) $365 puts active nearing 35,000X on the day
1/6/21 ACM Research (ACMR) highs of the day with 1,800 February $130 OTM calls bought for $2.60, strong pre-announce this morning for FY20
1/6/21 Quidel (QDEL) with 1000 February $240 calls bought $8.90 to $9
1/6/21 Penn Gaming (PENN) active buying in February $100 calls this morning near $6.75 for over 3000X
1/6/21 Zillow (Z) large opening sale 2000 January 2023 $100 puts for $18.50, popular approach lately
1/6/21 Etsy (ETSY) January $180 puts being sold to open ITM $13.10 down to $12.40
1/6/21 Etsy (ETSY) the February $175 puts now being sold to open 1250X for $15.90 to $15.40
1/6/21 Z-Scaler (ZS) with 175 January 2023 $140 calls opening for $75 today as the January $90 calls adjust up and out
1/6/21 Snap (SNAP) with 3500 Jan. 29th (W) $52 calls opening this morning
1/6/21 Micron (MU) buyer 9000 February $80 calls $4.60 as 4000 Jan. $65 adjust
1/6/21 Appian (APPN) the January 2022 $160/$240 call spread bought 200X400 today for $1.55
1/6/21 Tesla (TSLA) sweep buyer 1000 Jan. 2022 $1400 calls for $100
1/6/21 Tesla (TSLA) now 5000 June $850 calls opening with March $700 adjusting
1/5/21 Micron (MU) the February $85 calls being bought over 14,000X for $3.15, adjusting the January $77.50 calls ahead of earnings
1/5/21 Lemonade (LMND) with 800 January $95 puts sold to open for $1.40 this morning
1/5/21 Shopify (SHOP) trading 1000 Feb. 5th (W) $1000/$1100 ITM call spreads for around $61
1/5/21 Shopify (SHOP) with 500 January 2022 $1800 OTM calls bought today for $78.50 to $80.50
1/5/21 Pinterest (PINS) with buyers of 925 May $110 calls for $3 to $3.05 today
1/5/21 Lumentum (LITE) shares strong today with 2,400 June $97.50 calls being bought between $13.60 and $14.50
1/5/21 Snap (SNAP) opening sale 1000 June $45 puts for $5.62
1/5/21 Microsoft (MSFT) with 6000 Feb. 12th (W) $235 calls bought $2.63 offers this afternoon
1/4/21 Tesla (TSLA) trading 3000 February $750/$700 bull put spreads early, a popular trade all last week as well with ITM bull put spreads
1/4/21 Zoom (ZM) buyers here 900 January $382.50 calls $4.40 to $5.70
1/4/21 Zoom (ZM) now a buyer 700 Jan. $395 calls $5.70
1/4/21 Boeing (BA) buyers 1200 Jan. 29th (W) $207.50 calls $10.85 to $11.20
1/4/21 Boeing (BA) also 1200 Jan. 22nd (W) $205 calls bought $9.55 to $10 this morning and 1500 of the $207.5 calls opening around $8.50
1/4/21 Taiwan Semi (TSM) with 2000 July $120 calls bought for over $2M as February $100 calls adjust
1/4/21 Semiconductor ETF (SMH) 8,050 February $230 calls bought for $5.90 as January $205 calls close $17.90
1/4/21 Visa (V) buyer 2400 Jan 29th (W) $222.5/$227.5 call spreads
1/4/21 Square (SQ) the June $220 calls being bought over 3,350X this morning up to $35, although smaller lots throughout the morning
1/4/21 Tesla (TSLA) massive position adjusting again opening 22,500 Jan. 2022 $800 calls for $430M, rolling Sep. $700 calls
1/4/21 NovoCure (NVCR) into weakness with 500 June $140 calls bought $40.10 as March $125 adjust
1/4/21 Apple (AAPL) midday low reversal candle coincided with 6000 Feb. 5th (W) $128 puts being sold to open $6.60 to $6.30
1/4/21 Snap (SNAP) with 20,000 January 29th (W) $51 calls opening for $2.20, adjusting the Jan. $50 calls from 11/20