I’ll be a special guest on IBD LIVE this Friday, August 27th at 9:30AM EST. Here’s the link to sign up if you want to try the product: https://shop.investors.com/offer/splashresponsive.aspx?id=IBD-Live&src=A00459A&&refcode=JF_IBDLiveLinks

Topics covered:
1) 0:00 Announcements
2) 1:00 Market Commentary and Index Review (Nasdaq Composite, S&P 500, and Russell 2000)
3) 9:40 Stock Review – Watch List/General Ideas/Commentary: TSLA, ALGN, SWAV, NOW, BILL, AVLR, AFRM, ZI, DXCM, ALNY, ORMP, HZNP, NKTX, WING, LTHM, ALB
4) 20:30 Conclusion/Summary

Market Summary:
In recent videos, I discussed my market view over two timeframes. During August and September, I am expecting higher volatility, mainly because these two months are traditionally two of the weaker months of the year. Into year-end, I am expecting the market to go higher for the four reasons I mention in this video. This is where members need to make decisions based on their own timeframe. If you trade shorter-term, maybe keep positions light to help mitigate some of the potential volatility. If you have a longer-term timeframe, get those strong entry points to help give you a cushion during normal pullbacks.

When the Nasdaq Composite and S&P 500 declined to their respective 50-day moving averages recently, I discussed being defensive, just in case we break below those levels. As a reminder, I will always get defensive around these levels to protect members, but I never discussed shorting, buying puts, or getting overly bearish. You just can’t right now because the majority of market participants have one foot out the door. For example, last Thursday saw high levels of bearishness in many sentiment surveys. Since the market tends to fool the majority, this consistent bearishness on every drop not only provides a floor to the selling, but also results in the market shooting back up as it has the past few days.

From here, I am still expecting volatility until the end of September, but the same basic concepts apply: 1) Stick with the trend. If you want to vary your investment levels, you can, but only do what you feel comfortable with. Don’t feel like you have to trade. If you can’t watch the market closely, use smaller positions and use the 10-week moving average as your guide. 2) Expose yourself to strong stocks. I do my best to present tons of idea generation in these videos. 3) Get strong entry points. Do not chase extended stocks. 4) Manage risk when any positions decisively turn against you. Again, use the 10-week as your guide. Good luck for the remainder of the week!

Unusual Option Activity
8/25/21 Novartis (NVS) 10,000 January $95 calls are bought for $3
8/25/21 Taiwan Semi (TSM) afternoon buyer of 1,900 January 2023 $135 calls for $11.10
8/25/21 Pfizer (PFE) buyer of 1100 September $45.50 calls $3.05 offer
8/25/21 Tesla (TSLA) buyer 6500 September $815/$900 call spreads for $2.20
8/25/21 Tesla (TSLA) also with 1250 Dec. $1250 far OTM calls bought $3.25 offer
8/25/21 Wingstop (WING) opening sales 600 Mar $120 puts for $4
8/25/21 Biotech ETF (XBI) 15,000X March $150 calls bought for $3.75 while the Jan $140/$120 bull risk reversals opened 15,000X as well at a $1.60 credit
8/25/21 Nvidia (NVDA) buyers of 6500 October $250 calls in early trade
8/25/21 Affirm Holdings (AFRM) Sep 80 calls active 2100X
8/25/21 Horizon Therapeutics (HZNP) with 1,000 February $85 puts sold to open $3.30 to $3.20
8/24/21 Snap (SNAP) IV rising late with 2000 September $74 calls bought for $3.65
8/24/21 Unity Software (U) sale to open of 500 November $115 puts at $7.50
8/24/21 Trimble (TRMB) 550 February $95 calls with buyers today near $6.90
8/24/21 Roblox (RBLX) with 500 April $90 puts sold $16.10 to open and 500 of the $85 puts sold $13.60 to open
8/24/21 Affirm Holdings (AFRM) buyers of 500 November $85 calls for $4 to open this afternoon
8/24/21 Taiwan Semi (TSM) with 1,700 November $100 ITM calls bought for $14.45 to $14.65.
8/24/21 Taiwan Semi (TSM) also with 1,500 November $105 calls bought $10 to $10.35
8/24/21 Ceridian HCM (CDAY) buyers this morning of more than 1000 September $110 calls for $3.20 to $3.40 to open
8/24/21 Western Digital (WDC) seeing 5000 October $70/$80 call spreads bought
8/24/21 Micron (MU) today with 1000 November $65 ITM calls bought for $9.10 to $9.20
8/24/21 Crispr Therapeutics (CRSP) with 1000 Sep. 3rd (W) $127 calls opening $7.33 as Aug. 27th (W) $126 adjust out
8/24/21 Salesforce (CRM) with 2,000 September $265 calls opening for $7.87 as the $260 calls adjust higher
8/24/21 DexCom (DXCM) with 175 December $400 calls bought this morning early from $120.75 to $121.40, more than $2M
8/24/21 Horizon Therapeutics (HZNP) buyers of 440 November $115 calls at $6.70 offer as well as 1000 more October $115 calls at $4 offer
8/24/21 Service Now (NOW) buyers of 250 January $620 calls up to $53 this morning into the recent highs
8/23/21 Tesla (TSLA) with 1700 September 2022 $470 puts sold to open for $48
8/23/21 Shopify (SHOP) with 2,200 September $1,200 puts sold to open this morning from $3.50 to $3 to open
8/23/21 Horizon (HZNP) with 1300 October $115 calls bought for $3.30 to $3.35
8/23/21 Zoominfo (ZI) 350 Jan $60 puts sold to open $6.50
8/23/21 Livent (LTHM) with 1000 January $25 calls bought today with buyers at $3.80 and $4.40
8/23/21 Semiconductor Bull 3X (SOXL) buyers active early for 5000 September $42 calls $3 to $3.10
8/20/21 Taiwan Semi (TSM) seeing 10,000 October $110/$120 call spreads open into the close