Topics covered:
1) 0:00 Announcements
2) 0:30 Market Commentary and Index Review (Nasdaq Composite, S&P 500, and Russell 2000)
3) 8:45 Stock Review – Energy: XLE (ETF), XOP (ETF), OIH (ETF), USO (ETF), DVN, OXY, MRO, MPC, VLO, EQT, APA
4) 12:35 Stock Review – Watch List/General Ideas/Commentary: ALB, LTHM, LLY, BMY, MRK, PRCT, LNTH, HALO, CELH, ZIM, OLN
5) 17:50 Conclusion/Summary

Market Summary:
The message is the same: Be patient, stay disciplined, and don’t fight the Fed. Based on some emails I’m getting, I’m noticing that some members are getting very impatient. Please keep in mind that the Fed is still very hawkish and this market will test everyone’s patience. In today’s Fed minutes, they reiterated their priority of fighting inflation and made it clear that they are ok if they have to “restrict” demand to do it. In other words, don’t fight the Fed!

As I’ve mentioned many times, if you want to trade, remember the four rules: 1) At least give yourself a chance with stocks that are in uptrends and/or showing decent relative strength. In these videos, I try to present many of those stocks for idea generation. 2) Keep your positions light to help from getting chopped up in this higher volatility environment. 3) Get strong entry points (near the 21-day EMA). 4) Manage risk. Don’t forget to stick to your stops if anything breaks down. Can we see countertrend rallies here and there? Of course! However, they are very difficult to time and I don’t expect them to be sustained. The positive message is that there will be some tremendous opportunities when we come out of this correction. We just need to be patient until market conditions improve. Thank you and good luck for the remainder of the week.

Unusual Option Activity
5/25/22 Energy ETF (XLE) buyer 4000 July $91 calls $2.29
5/25/22 PMV Pharma (PMVP) more bull spreads today with 1500 June 10 puts sold to buy 15/25 call spreads
5/25/22 Albemarle (ALB) the December $210 puts being sold to open 2000X for $24.10
5/25/22 Electronic Arts (EA) buyer today of 500 July $140 calls for $5.55, follows the action yesterday and recent M&A rumors
5/25/22 Evonix (ENVX) trade opens 1000 January $17.5/$7.5 bull risk reversals for $0.20 credits
5/25/22 Halliburton (HAL) with 1950 September $26 puts being sold to open down to $0.61
5/25/22 Mosaic (MOS) spread sells 8000 September $45 puts to buy the $65/$90 all spread 8000X, net $2.16 debit
5/25/22 Western Digital (WDC) buyer 2500 July $60 calls for $3.40
5/24/22 PMV Pharma (PMVP) spread sold 1000 June $7.50 puts to buy the $15/$30 call spreads for $2.90 debit
PMVP is a precision oncology company focused on developing reactivators of mutant P53
5/24/22 Schlumberger (SLB) with 50,000 June $47 calls sold to open for $0.74 to $0.63
5/24/22 Schlumberger (SLB) also with 2400 August $40 puts selling to open $2.78
5/24/22 Tesla (TSLA) opening sales of 1000 August $480 puts for $38.50 to $38.25
Willing buyer of TSLA shares near the November 2020 level where it was announced they would go into the S&P 500
5/24/22 Mosaic (MOS) opening sales of 2000 July $55 puts for $3.55 to $3.50
5/24/22 Devon Energy (DVN) buyers earlier of 1000 June $67 calls for $5.00 to $5.10 and spread against the $72 calls sold for $2.75
5/24/22 Marathon Oil (MRO) buyers of 1,500 June 10th (W) $27 calls for $1.80 to $1.85
5/24/22 Dow Chemical (DOW) with 1500 September $67.5/$65 bull risk reversals opening at a $0.65 credit
5/24/22 Electronic Arts (EA) with a big block of 5000 September $150 calls bought $6.10
EA flow continues bullish after M&A speculation yesterday
5/23/22 Occidental (OXY) with 1000 August $60 calls bought $9.40
5/23/22 Occidental (OXY) also with 1500 August $65 calls bought $7.78 to $8.10
5/23/22 Oil ETF (USO) with 9000 June $83 calls bought $3.11 this afternoon in large lots
5/23/22 Schlumberger (SLB) with 5000 deep ITM January $22.50 calls bought near $21 to open, over $10M
5/23/22 Merck (MRK) with 1000 June 2023 $95 puts sold to open for $9.90
5/23/22 Lockheed Martin (LMT) with 600 Jan 2024 $480 and $490 calls bought to open for $38 and $34.50 respectively
5/23/22 SM Energy (SM) with 1000 July $45 calls bought for $2.05
5/23/22 Chevron (CVX) 1400 August $185 calls bought for $6
5/23/22 Sinclair (DINO) with 1275 December $30 puts sold to open for $1.30
5/23/22 EQT (EQT) opening seller 1000 June 2023 $42 puts for $9
5/23/22 Bristol Myers (BMY) opening sale 3000 Dec. $67.5 puts for $2.25