After Monday’s strong “Follow Through Day” (FTD) on the Nasdaq Composite, the remainder of the week saw the market consolidate on lighter and lighter volume. This is a good sign because you don’t want to see any heavy distribution immediately after a FTD. From here, it wouldn’t surprise me to see the market consolidate in a range and continue to digest the strong gains since early October. While going through my screens, I didn’t find too many setups and I noticed that many stocks need to put in handles to their newly formed bases. If this happens, it would be considered normal price action and could possibly provide a nice technical set up for the markets to move higher after the Presidential election. If you’re nervous heading into the election, I suggest using lighter than normal positions, however, pay more attention to the price action and less to the news. Hopefully you have strong entry points on some stocks from the past few weeks and a cushion in case we see some consolidation over the near-term. Enjoy your weekend and see you on Monday, October 19th at 7PM EST for the next webinar.

Unusual Option Activity:
10/16/20 Skyworks (SWKS) 180 May $155 calls bought $19.70
10/16/20 Twitter (TWTR) 4000 Oct. 30th (W) $48 calls bought today for 10-29 earnings
10/16/20 Apple (AAPL) size opening sales of 10,000 March $102.50 puts today near $5.65 as October $115 short puts adjust
10/16/20 Netflix (NFLX) midday with 1000 November $565 calls bought $27.80 to open, earnings 10-20
10/16/20 Akamai (AKAM) large bull risk reversal buys 1000 Jan. 2022 $125 calls $10.41 and sells the $100 puts for $10.29
10/16/20 Atlassian (TEAM) opening sale 1000 January 2023 $165 puts $31.60, confident in long term viability
10/16/20 S&P 500 ETF (SPY) large opening sale today of 40,000 April $315 puts for $12.71
10/16/20 Nasdaq 100 ETF (QQQ) opening seller 4000 Dec. $262 puts for $6.14 today. QQQ also with 2050 March $295 puts sold $24.25 to open
10/16/20 Lululemon (LULU) into day lows with 1000 November 6th (W) $370 calls bought $6.15 to $6.60 to open
10/16/20 Fastly (FSLY) opening sale 500 June 2021 $80 puts for $19.60, similar to put sales yesterday at $80 strikes
10/16/20 Zillow (Z) weak again back to lower value support and 4000 Nov. 6th (W) $113 calls sell to open $2.66 while 2000 of the $101 calls are bought $6.31 in a ratio spread
10/16/20 Zillow (Z) also a buy of 1000 Nov. 6th (W) $103 calls today $5.79 that should capture earnings
10/16/20 RedFin (RDFN) buyers 700 December $50 calls $5.80 to $6 into day lows
10/16/20 Apple (AAPL) notable opening seller of 2000 November $126.25 puts today down to $9.70 bids
10/16/20 Kala Pharma (KALA) another 1000 April $17.50 calls bought today for $1.45 to $1.60, spot where 2000 bought yesterday
10/16/20 Zoom (ZM) continues to hit record highs, January $600/$560 bull put spreads open 1000X early at a credit of $24
10/16/20 Penn National (PENN) with 500 December $70 calls bought for $10.60 to open early, size November $60 calls bought yesterday
10/15/20 Atlassian (TEAM) with buyers of the October 30th (W) $190 calls up to $9.50, over 3000X here with earnings on 10-29
10/15/20 Elastic (ESTC) with a large adjustment as 1,297 January $120 calls bought to open at $14 while closing the October $95 calls at $27.60 after paying $15.70 back on 8/20.
10/15/20 Applied Material (AMAT) IV ticking higher this afternoon with next week $64.50 calls active with buyers 6000X
10/15/20 Salesforce (CRM) with 625 May $250 puts sold to open $30.80
10/15/20 Kala Pharma (KALA) some unusual action this afternoon with 1000 April $17.50 far OTM calls opening $0.85 to $1.35. KALA does have 20% of its float short. KALA is awaiting FDA approval of Eysuvis by the end of the month. KALA is a pure-play in ophthalmology.
10/15/20 Farfetch (FTCH) after bullish flow yesterday with a trade today that sold 700 November $32 calls and bought 700 December $33 calls
10/15/20 Tesla (TSLA) with 6750 June 2021 $600 calls opening as March $530 adjust where 19,000 opened 9/1
10/15/20 Tesla (TSLA) June 2021 $600 calls up to 22,000X as rest of the March $530 have adjusted
10/15/20 JD.com (JD) IV jumping as into day lows December $80 calls with 22,500X bought $6 to $6.45 and looking to add to size already bought in OI
10/15/20 Zillow (Z) with 3,000 of next week’s $110 calls active with buyers today between $1.20 and $2.05, nice pullback this week to the rising 21-MA
10/15/20 Alibaba (BABA) with 2000 Nov. 13th (W) $300/$322.50 call spreads opening
10/15/20 Fastly (FSLY) nearing 2000 March $80 puts being sold to open near $16 into weakness
10/15/20 Fastly (FSLY) more opening put sales at $80 strike in Jan. 2022 for 1675X
10/15/20 Fastly (FSLY) now also seeing 7000 December $80 puts sell to open $8.90/$8.80
10/15/20 Cloudflare (NET) November $60 calls being bought into weakness 1775X
10/15/20 Cloudflare (NET) also with 500 May $45 puts sold to open for $5.60 to $5.40

Topics covered:
1) 0:00 Announcements
2) 0:30 Market Commentary and Index Review (Nasdaq Composite, S&P 500, Russell 2000)
3) 7:50 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) 17:45 Stock Review – Software: FSLY, DDOG, BILL, DOCU
5) 22:00 General Ideas/Commentary: MTH, LEN, XHB (ETF), ITB (ETF), ETSY, DKNG, PENN, PYPL, AMD, TSM, CHGG, BABA, JD, PDD
6) 27:35 Current Setups – TSLA, ZS, STMP, SHOP
7) 29:50 Conclusion/Summary