I always like to look at the positives and the negatives and adjust my investment levels accordingly. The current positives: 1) The major indexes are strong, they are all above their key moving averages, and there’s very little distribution. 2) Seasonality. November and December are two traditionally strong months. We also have a regular cycle Options Expiration (OpEx) week coming up and two holiday-shortened weeks in Nov and Dec. These weeks tend to be bullish and trend to the upside. 3) The Fed continues to provide liquidity and a low-interest rate equity-friendly environment. Current negatives: 1) Some sentiment measures are showing high levels of bullishness. 2) Upcoming headwinds (possible contested election, waiting on stimulus, and Covid cases spiking). There haven’t been too many setups over the past few weeks but they are slowly improving, so I will put this in the neutral category for now.

Conclusion: I am still leaning bullish because the positives and the market strength currently outweigh the negatives. I came into the week 60% invested and I am currently around 70% invested. I am giving myself room to buy more if we see any dips and also giving room to deal with the higher volatility we’ve seen recently. If the volatility calms down, I can always put more money to work. The strongest stocks on my screens continue to come from the following sectors: Semiconductors, Biotech, Medical Products, and Genomics-related. Enjoy the rest of your weekend and see you at the next webinar this Monday, November 16th at 7:30PM EST. Thank you!

Unusual Option Activity:
11/13/20 Adobe (ADBE) buyer 4000 March $420 calls $66.84 as Dec. $400 adjust out and up
11/13/20 Beyond Meat (BYND) spread buys 1,100 January 2023 $90 calls for $58.85 and sells the Jan. 2022 $125/$95 put spread and the January 2022 $170 calls
11/13/20 Ring Central (RNG) buyers of more than 1,175 April $320 calls up to $33.30, adjusting the November $275 calls from 11/9
11/13/20 Farfetch (FTCH) with 500 Jan. 2022 $65 calls being bought for $10.60 to $11.30 to open
11/13/20 Fastly (FSLY) buyer of 1000 Dec. 4th (W) $95 calls for $1.80
11/13/20 Fastly (FSLY) December $90 calls hot this morning as well trading 3000X
11/13/20 Taiwan Semi (TSM) buyer 300 February $80 calls $15.50 to $15.60
11/13/20 Taiwan Semi (TSM) Dec 4th (W) $100 OTM calls actively bought today 3000X
11/12/20 Semiconductor (SMH) with 10,000 February $175 calls opening at $23 in a $23M position as November $150 adjust
11/12/20 Twilio (TWLO) with 500 December $290 calls bought today between $16 and $16.30 in stock replacements
11/12/20 Google (GOOGL) another December $1700/$1800 call ratio spread today, 1800X3600
11/12/20 Service Now (NOW) with 650 February $580 calls bought today for $18.10, adjusting out of the November $490 calls bought on 8/20
11/12/20 Consumer Discretionary ETF (XLY) with 1,500 June $160 calls bought today for $6.60, some January calls adjusting and top holdings include AMZN, HD, NKE, MCD and SBUX
11/12/20 Netflix (NFLX) with 350 January 2022 $510 puts being sold to open down to $96.75
11/12/20 Netflix (NFLX) also 300 January 2022 $490 puts sold to open $85
11/12/20 Nasdaq 100 ETF (QQQ) buyers of 2500 Dec. 11th (W) $302.50 calls this morning
11/12/20 Nasdaq 100 ETF (QQQ) buyer Dec. 31 (Q) $305 calls 7500X at $4.04 and sells 15,000 fo the $320 calls $1.24
11/12/20 Fastly (FSLY) buyers of 1400 June $80 calls from $15.90 to $16.10
11/12/20 Fastly (FSLY) also this morning with 1,500 June $75 puts sold to open for $16.40
11/12/20 Fastly (FSLY) 1000 March $90 calls buy here $9 offer
11/12/20 SNAP (SNAP) 2500 Nov $40.50 calls with early action
11/12/20 SNAP (SNAP) Dec $40 call flow here $3.10 offer, trading 2000X
11/12/20 CrowdStrike (CRWD) with 1100 November $143 calls bought to open up to $2.36
11/12/20 CrowdStrike (CRWD) with 2,000 June $115 puts sold to open today $11.90 to $11.70
11/12/20 Rocket Companies (RKT) 4000 OTM Nov $23.50 calls w/ buyers
11/12/20 Pinterest (PINS) sellers of 700 September 2021 $55 puts for $11.20
11/12/20 Atlassian (TEAM) buyer of 625 November $195/$225 call spreads this morning sells the $175 puts to open for a net $4.10
11/12/20 Acaida Pharma (ACAD) aggressive buyers 850 Dec. $55 OTM calls $1.50 offer, Biotech with a lot of bullish flow lately
11/12/20 Cloudflare (NET) just under new highs with 2000 December $60 calls seeing buyers against sales of 2000 Jan. $55 puts
11/12/20 Etsy (ETSY) with 700 December 11th (W) $130/$140 call spreads bought for $4.43
11/12/20 Virgin Galactic (SPCE) with 1,200 ITM January $14 calls opening this morning for $7.65 to $7.70
11/12/20 JD.com (JD) buyers of 4,000 January $87.50 calls from $6.60 to $7.50 today ahead of earnings on 11-16
11/12/20 JD.com (JD) also 3500 November $88 calls bought ahead of 11-16 earnings with lower strike calls adjusting up
11/12/20 Invitae (NVTA) with 1,000 January $55 calls bought up to $2.70
11/11/20 Lattice Semi (LSCC) IV surging higher with 3000 Nov $45 calls bought up to $0.45
11/11/20 Lattice Semi (LSCC) also with December $45 calls bought $0.75 to $1.10

Topics covered:
1) 0:00 Announcements
2) 0:30 Market Commentary and Index Review (Nasdaq Composite, S&P 500, and Russell 2000)
3) 9:35 Stock Review – Mega Caps: AMZN, ADBE, AAPL, CRM, TSLA
4) 13:15 Stock Review – Semiconductors/Software: NVDA, AMD, QRVO, TER, QCOM, LSCC, SMH (ETF), NOW, ZEN, APPN, NET
5) 17:40 Stock Review – Biotech/Medical Related: PSNL, NVTA, TPTX, BTAI, CCXI, SWTX, NVCR, KALV, MRSN
6) 22:40 Stock Review – General Ideas/Commentary: XPEL, PINS, SNAP, SQ, PTON, TDOC, ZM, CELH, CRNC, NIU, AN, LTHM, SDGR, LAD, YY, PDD
7) 33:25 Current Setups – AAPL, NVCR, SNAP, NVTA, CRM
8) 35:25 Conclusion/Summary