Topics covered:
1) 0:00 Announcements
2) 0:15 Market Commentary and Index Review (Nasdaq Composite, S&P 500, and Russell 2000)
3) 8:30 Stock Review – Energy: XLE (ETF), XOP (ETF), OIH (ETF), APA, MPC, DVN, EOG, FANG, HES, VLO, SM
4) 12:25 Stock Review – Watch List/General Ideas/Commentary: BROS, MOS, CF, BG, MA, AAPL, EXPE, ZIM, SBLK, NMM
5) 17:10 Stock Review – Unusual Option Activity Ideas: HP, ACAD
6) 21:35 Conclusion/Summary

Market Summary:
The message is the same as my past few videos: Stay defensive and be patient! I’m expecting more downside over the next 3-6 weeks but that doesn’t mean that we will go straight down. We will likely chop around and this type of environment can really hurt and frustrate traders. If you are going to trade, at least keep things light so you don’t get tossed around and chopped up. If you want to nibble at some shares for longer-term holds, same thing, at least start with smaller positions. Of course, I will be open-minded and make adjustments if more stocks set up.

The most consistent sector that continues to show up in my stock screens is Energy. If you are going to trade any of these names, make sure to get strong entry points. Again, keep things light and DO NOT chase extended stocks. In a better environment, the market can be forgiving when you make mistakes and are undisciplined. In a more difficult market (like the one we are in now), the market can be ruthless if you don’t stick to your discipline. Enjoy the rest of your weekend and good luck next week!

Unusual Option Activity
2/4/22 Oil and Gas E&P (XOP) buyer of 2000 January 2023 $140/$160 call spreads for $3.70, top holdings CPE, SM, OXY, FANG, CLR and COP
2/4/22 Nasdaq 100 ETF (QQQ) with 15,000 Dec. $310 puts bought this morning $18.40 to $19+ right into the morning high
2/4/22 S&P 500 ETF (SPY) similar to QQQ with Dec. $390 puts bought 8000X to open this morning $19.10 to $19.45+
2/4/22 S&P 500 ETF (SPY) also seeing buyers of the May $449/$409 put ratio spread today 2000X4000
2/4/22 Acadia Pharma (ACAD) unusual buyers of 3000 February $26 calls late day for $0.45 to $0.60
2/4/22 Biotech ETF (XBI) with 1000 January 2024 $90 puts sold to open today for $15.60
2/4/22 Palo Alto Networks (PANW) buyers of 400 June $510 calls this morning between $47 and $50 to open
2/4/22 Amazon (AMZN) with 1250 June $2800 calls opening $450.08 as February $3150 adjust, a $56.5M position
2/4/22 Nvidia (NVDA) buyers active for 6000 March $310 OTM calls today near $3.25 offer, reports on 2-16
2/4/22 Shopify (SHOP) buyers of 650 February $720 puts from $23.40 to $24.70 ahead of earnings on 2-16
2/4/22 Zscaler (ZS) with 400 March $220 calls opening ITM for around $1.85M
2/4/22 Valero (VLO) opening buyers of 400 June $72.50 calls for $4.70
2/4/22 Helmerich and Payne (HP) seeing 9000 of those March $35 calls bought $0.90 that bought 2000X late yesterday
2/3/22 Pfizer (PFE) opening sale 1700 March $57.5 puts $5.25 bid
2/3/22 Micron (MU) with 2200 May $80 puts being sold to open for $6.05
2/3/22 Advanced Micro (AMD) buyer 1200 March 4th (W) $120 calls for $8.40
2/3/22 Shopify (SHOP) buyer of 1000 February $780/$740 put spreads today ahead of 2-16 earnings for $12.67
2/3/22 Nvidia (NVDA) with 3,000 April $215 calls bought for $42.48 as the $200 calls close and adjust higher ahead of 2-16 earnings
2/3/22 Nvidia (NVDA) March $305 calls with afternoon accumulation near $3.80 for 10,000 contracts
2/3/22 Holly Frontier (HFC) with another 1000 February $35 ITM calls bought today, $2.25
2/3/22 Helmerich and Payne (HP) late afternoon unusual buyer 2000 March $35 calls for $0.60
2/3/22 Diamondback Energy (FANG) buyer 200 July $125 calls $19.80
2/3/22 Diamondback Energy (FANG) also with 500 June $150 calls bought for $8.25 to $8.35, most being spread with the $175 calls
2/3/22 SM Energy (SM) buyer 3350 March $35/$45 call spreads as February spreads adjust
2/3/22 Hess (HES) seeing 1000 Jan. 2023 $125 OTM calls bought $5.70 to $6.10 in early trade
2/3/22 Amazon (AMZN) buyers of 2350 May $3000/$3500 call spreads this afternoon into earnings
2/3/22 Amazon (AMZN) also with 1000 April $3000/$3300 call spreads bought
2/2/22 Vertex Pharma (VRTX) with 770 March $260 calls opening as the $250 adjusted