Just a friendly reminder that this is a strong market and to stick to your discipline. Strong markets tend to forgive mistakes such as chasing stocks and not stopping yourself out. Know your rules, know your timeframe, and stick to them. Right now, the Nasdaq Composite is extended and I’m on the lookout for some possible end of the month profit taking. If that happens, I will look to put money to work on support. As I mentioned in last weekend’s video, I am approximately 50% invested for clients. If we go higher (like we have so far this week), I will hopefully still participate. I have been able to participate so far this week by sticking to the leaders and keeping exposure to them. I am still bullish over the next few months, so I will put cash to work when we see a pullback. Again, this is part of my discipline and I am sticking to my plan. Know your own plan and stick to it based on your investment objectives. Good luck for the remainder of the week.
If you are a MarketSmith member, here’s the link to register for Thursday’s webinar, 8/27/20 at 4:15PM EST: https://marketsmith.investors.com/resources/webinars/registerWebinars?id=1807
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Unusual Option Activity:
8/27/20 Google (GOOG) with 10,000 October $1650/$1950 call spreads bought for $74.50
8/27/20 Datadog (DDOG) with 925 January 2022 $80 puts sold to open for $17.50 today
8/27/20 Adobe (ADBE) with 10,000 October $520/$620 call spreads bought this afternoon for $30.75
8/27/20 Coupa Software (COUP) with 1,000 January 2022 $300 puts sold to open for $55 today, similar to other high-growth names lately
8/27/20 Chegg (CHGG) with buyer of more than 4000 September $80 calls today up to $3, report this morning that more colleges are seeking spikes in COVID as they return and could put more pressure on remote learning
8/27/20 Zillow (Z) with 1,000 January 2022 $80 puts sold to open today for $19
8/27/20 Salesforce (CRM) seeing 32,000 November $250/$280 call spreads open for $16 as the $200/$230 spreads adjust higher from 8/5
8/27/20 Salesforce (CRM) also seeing 6500 November $260 calls open around $32.35
8/27/20 Apple (AAPL) with over 6,000 September 25th (W) $500 calls bought up to $30.50 today, same timeframe they were buying in size yesterday across tech
8/27/20 Facebook (FB) November $400 calls noted early up over 7000X
8/27/20 Facebook (FB) the September $310/$345 call spread also being bought 1,500X3,000 today
8/27/20 Netflix (NFLX) the September $520/$540/$560 call butterfly spread trading 1,000X2,000 today into strength, paying $2.50
8/26/20 SPY trade closes out September $305 calls for a large profit and rolls into 10,000 short Nov. $341 puts sold for $15.35
8/26/20 QQQ opening seller 3000 March $280 puts today for $22.71. QQQ also big buy this afternoon in Oct. $291 calls 10,000X for around $8M
8/26/20 Google (GOOG) similar to the other large cap Tech favorites with 5000 September 25th (W) $1600/$1525 bull risk reversals opening
8/26/20 Microsoft (MSFT) with 16,000 September 25th (W) $215/$205 bull risk reversals opening for $4.55
8/26/20 Apple (AAPL) with 15,000 September 25th (W) $450 puts sold to open for $7.85
8/26/20 Netflix (NFLX) opening sale 10,000 September 25th (W) $440 puts for $5
8/26/20 Netflix (NFLX) now with 15,000 Sep. 25th (W) $490/$465 bull risk reversals opening for $10.25
8/26/20 Amazon (AMZN) also with 2,000 September 25th (W) $3320/$3155 bull risk reversals bought for $93.50
8/25/20 CrowdStrike (CRWD) seeing buyers in October $110 puts today 700X to go with January call closes at $105 strike, earnings on 9-2, and over last two to three weeks seen a stark shift from its constant bullish flow to a lot more cautious
8/25/20 Facebook (FB) seeing 1200 September 2022 $240 calls bought near $82 today ITM for $10M
8/25/20 Facebook (FB) with 36,000 September 25th (W) $275/$260 bull risk reversals opening $11.10 debit
8/25/20 Zillow (Z) spread buys the January $80/$100 call spread 2,000X3,000and sells the $65 puts 2,000X
8/25/20 Advanced Micro (AMD) strong to day highs and 1000 June 2021 $75 puts sell to open $12.05
8/25/20 Fastly (FSLY) earlier noted the closing sales of October $85 size puts 2000X, and also seeing nearly 3000 December $100 calls bought to open $14.20 to $14.80
8/25/20 Fastly (FSLY) seeing lots of Sep. 4th (W) call action $90, $95, $100 as well potentially eyeing a TikTok resolution
8/25/20 Google (GOOGL) buyer 400 November $1700/$1860 call spreads
8/25/20 DataDog (DDOG) with 500 March $120 calls bought $4.80 to open with stock trading around $84 this morning
8/25/20 Salesforce (CRM) spread here sells 600 September $205 puts to buy the $217.50/$245 call spread
8/25/20 Adobe (ADBE) similar to CRM with 18,000 September 25th (W) $480/$455 bull risk reversals opening
8/25/20 Zoom Video (ZM) buyer of 400 March 2021 $400 calls for $20.80, over $825K with shares trading $289.50
8/24/20 Tesla (TSLA) deep ITM September $2400 puts sold to open around 11:45am for $449, adjusting $1900 strike short puts
8/24/20 Nvidia (NVDA) buyer of around 1000 Sep. 4th (W) $525 calls $9.85 to $10 to open
8/24/20 Netflix (NFLX) 1000 Oct. 2nd (W) $500/$520 call spreads open here for $7
8/24/20 Pinterest (PINS) buyers into day lows 4000 November $35 calls $3.60 to $3.75
Topics covered:
1) 0:00 Announcements
2) 1:00 Market Commentary and Index Review (Nasdaq Composite, S&P 500)
3) 11:40 Stock Review – Mega Caps: AMZN, NFLX, MSFT, ADBE, FB, GOOGL, AAPL, CRM, QQQ
4) 18:10 Stock Review – Software: DOCU, NOW, COUP, AYX, VEEV, OKTA, DDOG, CRWD, FSLY, TWLO, ZS, ZM
5) 21:10 Stock Review – Other Big Caps: BABA, PDD, JD, SHOP, TSLA
6) 24:10 Stock Review – Semiconductors: NVDA, KLAC, TER, LRCX, SMH (ETF)
7) 25:15 Stock Review – General Ideas/Commentary: ETSY, NEON, NIO, PENN
8) 27:15 Current Setups – EBAY, IDXX, STMP, NIU, PSTI
9) 29:05 Conclusion/Summary