The price action in many individual growth stocks continues to be strong. As I’ve mentioned many times, 90% of what I use to judge the health of the market is the price action of stocks. Over the past two weeks, stocks have stabilized from the drop in September and many continue to breakout. We also completed a “Breadth Thrust Indicator” which bodes well for the market over the next 6-12 months. Additional resources on this can be found in the links below. I’m not going to argue with this strength. I’m simply going to take advantage of it. That’s why I’ve been encouraging people to turn off the news and focus more on the strong price action.
This upcoming week is the week of regular cycle options expiration (OpEx). If this week is strong, I will likely reduce my exposure. If we consolidate this week, I think that would be healthy given the strength last week. Of course we could see a pullback, but if that happens, I don’t see the downside being sustained because there are many stocks acting well across several different sectors. As always, if you’re not comfortable, start with smaller positions to help build your confidence. Enjoy the rest of your weekend and see you at the next webinar on Sunday, October 11th at 7PM EST. Thank you!

Some articles on the Breadth Thrust Indicator developed by Marty Zweig:
https://www.metastock.com/customer/resources/taaz/?p=37
https://www.investopedia.com/terms/b/breadth-thrust-indicator.asp
https://www.thechartreport.com/10-09-20/
https://twitter.com/edclissold/status/1314591382477180930

Unusual Option Activity:
10/9/20 Zillow (Z) with 500 January 2022 $100 puts sold to open for $23.45, stock replacement for about $1.18M
10/9/20 Netflix (NFLX) the January $600 calls bought to open today 2,000X from $35.70 to $37, shares in a nice weekly flag ahead of earnings on 10-20
10/9/20 Zoom (ZM) over 1,500 January $500 calls being bought today into strength from $71.40 to $74, nice flag setting up with shares near new highs and could see a boost with further lockdown measures of WFH policies being expanded
10/9/20 Zoom (ZM) the January 2022 $670/$760 call spread being bought 400X as well today
10/9/20 Pinterest (PINS) buyers of 2,000 October 23rd (W) $47 calls for $1.00 to $1.05, small flag forming after a nice run
10/9/20 ChemoCentryx (CCXI) with 1,000 February $45 puts sold to open for $4.80 and paired with 500 October $65/$95 call spreads and 500 November $70/$95 call spreads
10/9/20 Nio (NIO) with 1800 ITM November $25 puts sold to open today for $5.20, sizable trade and confident with shares at these levels as they form a nice flag
10/9/20 Marvell Tech (MRVL) buyer of 1000 November $48 calls today for $1.12
10/8/20 Beyond-Meat (BYND) midday buyer 350 January 2023 $250 calls $59 to $59.95 for around $2M
10/8/20 Alibaba (BABA) large buying January $330 calls $14.60 to $15.10 this afternoon 3500X for over $5.5M
10/8/20 Z-Scaler (ZS) with 400 September $140 puts sold to open between $24.85 and $25.30
10/8/20 JD.com (JD) buyer 10,000 December $80 calls $5.70, adjusting November
10/8/20 Marvell Tech (MRVL) rising to highs w/ IV jumping, 14K oct $45 calls bought
10/8/20 Palantir (PLTR) with 1,450 May $15 ITM puts sold to open today for $6.70, follows the heavy call activity yesterday
10/8/20 Virgin Galactic (SPCE) buyers of 3000 October 30th (W) $26 OTM calls here for $0.92 to $0.94
10/8/20 Livongo (LVGO) with 400 Oct. 30th (W) $140 calls opening $11.10 to $12.10 this morning
10/8/20 Netflix (NFLX) early spreads trading selling December $435 puts to buy the $500/$600 call spread 1160X
10/8/20 Google (GOOGL) with buyers early 1750 January $1800 calls $17.90 to $19.60 for over $3.7M
10/7/20 Netflix (NFLX) with 700 March $550 calls bought near $64.50 for over $4.5M
10/7/20 Facebook (FB) stock replacements bought 2000 March $255 calls near $31.50 to open

Topics covered:
1) 0:00 Announcements
2) 0:45 Market Commentary and Index Review (Nasdaq Composite, S&P 500, Russell 2000)
3) 8:45 NEW FOCUS LIST – AMZN, MSFT, ADBE, AAPL, CRM, QQQ (ETF), CRWD, ZS, OKTA, VEEV, NOW, TSLA, Z, MA, SQ, NVDA, ZM, SGEN, TXG, GH, NVTA, ADPT, ARKG (ETF)
4) 23:15 Stock Review – Software: FSLY, DDOG, BILL, ZEN, U
5) 29:25 General Ideas/Commentary: SHOP, NFLX, ETSY, EXPI, XPEL, BABA, JD, IRBT, MRVL, TSM, WSM, ZTS, TMO, CCXI, CRNC
6) 39:00 Current Setups – TSLA, CRWD, ADBE, PYPL, NVDA
7) 41:05 Conclusion/Summary