The biggest positives in the market right now: 1) The major indexes are above their key moving averages and there’s very little distribution. 2) Seasonality, as November and December are traditionally two of the strongest months of the year. 3) The Fed keeping interest rates low and providing liquidity. 4) Stocks continue to act well. The biggest negatives: 1) The extremely high bullish sentiment. 2) Short-term, the major indexes are getting a little technically extended. As I always say, this is where I encourage members to make their own decisions and know their own timeframe. If you are longer-term and you have strong entry points on your positions, then stick with your plan and accept some volatility along the way. If you are shorter-term, there’s nothing wrong with reducing some exposure to help cushion the downside when the inevitable pullbacks happen and also to have some cash to put to work at logical support levels.

The way I dealt with it recently was increasing my exposure over the past two weeks (to take advantage of the regular cycle options expiration week and this past holiday-shortened week) and then I decreased my exposure to approximately 60% invested on Friday (as I mentioned I would in Wednesday’s email if we saw strength on Friday). From here, if we head higher, I still have decent exposure, and if we pullback, I will have cash to put to work because I am still longer-term bullish. I discuss in this video the 60/40 portfolio rebalancing that could happen in December. I also give past examples of when the Russell 2000 was short-term extended and needed to move sideways to digest its gains. If you have any questions, you can ask them during the next Webinar which will be Sunday, November 29th at 7PM EST. Enjoy the rest of your weekend!

Unusual Option Activity:
11/27/20 Salesforce (CRM) spreads are selling the December 31st (W) $252.50 puts to buy the $270/$305 call spread 500X for a net credit with the Slack (WORK) rumors earlier this week and both earnings and their Investor Day upcoming.
11/27/20 Salesforce (CRM) also with 500 March $230 puts sold to open today for $13.90 in stock replacements
11/27/20 Slack (WORK) opening sellers 2000 December $40 puts $3.25
11/27/20 Fastly (FSLY) with buyers of the December $86.50 calls, 1275X up to $5.80
11/27/20 Cloudflare (NET) afternoon buyers of the December $85 calls 2,900X for $1.30
11/27/20 Cloudflare (NET) the January $85 calls also with buyers at 3.20 to open today, over 1450X
11/27/20 Amazon (AMZN) with 1,250 December 4th (W) $3,210 calls bought for $57.15 as the weekly calls roll
11/27/20 JD.com (JD) with 1,500 ITM December 11th (W) $85 calls bought up to $5.30
11/27/20 Pinduoduo (PDD) with 1,100 January $190 calls sold to open this morning for $3.15
11/27/20 Pinduoduo (PDD) also a buyer of 2,000 December $170 calls for $2.41 today
11/27/20 Tesla (TSLA) large trade buys 16,500 September 2021 $700 calls for $118.75 as the June $600 calls close and roll higher
11/27/20 Crispr Therapeutics (CRSP) with buyers of the December $145 OTM calls for $2.60 to $3.30 into the 11% move higher
11/27/20 Lemonade (LMND) with buyers active for 1,375 December 11th (W) $74 calls for $3.50 to $3.70
11/27/20 Peloton (PTON) with 1,500 December $96 puts sold to open for $2.70
11/27/20 Peloton (PTON) the February $100 puts also being sold to open today 1,500X for $10.10
11/25/20 Netflix (NFLX) with 1000 Jan $475 calls bought today as $450 calls adjust up
11/25/20 Snowflake (SNOW) strong today and Dec $350 far OTM calls with buyers 1000X today
11/25/20 Aspen Tech (AZPN) seeing unusual action today with 1200 December $130 calls opening as $125 adjust
11/25/20 Fastly (FSLY) spreads selling 1000 next week $75 puts and buying $87.5/$95 upside call spreads
11/25/20 Advanced Micro (AMD) January $100 calls hot trading 12,500X
11/25/20 Snap (SNAP) buyers of 4,950 June $55 calls for $4.70 to $4.85 to open
11/25/20 Etsy (ETSY) with 3,000 January 2023 $115 puts sold to open today for $25.50
11/25/20 NVIDIA (NVDA) buyers 2000 February $590 calls $20.35 to $20.75
11/25/20 Amazon (AMZN) 1500 next week $3250 calls active early, look to be some adjustments from 3150
11/24/20 Pinterest (PINS) the January $65 calls being bought 11,000X up to $5
11/24/20 BioTelemetry (BEAT) interesting unusual buy of 600 May $55 calls for $5.80
11/24/20 Tesla (TSLA) with 5,825 Dec. 31st (W) $520 calls opening as $450 calls adjust
11/24/20 Zillow (Z) with 4,000 Jan. 2023 $85 puts sold to open today for $18.25 in a stock replacement, sizable trade
11/24/20 Zillow (Z) also with 500 May $85 puts sold to open for $7.25
11/24/20 Snowflake (SNOW) opening sales of 500 Jan. 2022 $130 puts for $8.80, follows recent February put sales in size
11/24/20 Advanced Micro (AMD) with over $20M in September $95 calls being bought to open today $11.40 to $11.60, 8K contracts
11/24/20 Wynn (WYNN) with 1000 March $120 calls bought $6.15 offer
11/24/20 PayPal (PYPL) size buyers of 2000 January 2022 $220 calls today near $28.50 on average
11/24/20 Schrodinger (SDGR) with 1,000 March $125 OTM calls bought for $1.30 to $1.35, shares trading $68. The $4.55B company is a very interesting name with their drug discovery platform and could see more deals like the one they signed with Bristol (BMY) in 2021, a huge royalty stream potential
11/24/20 Marinus Pharma (MRNS) the Jan. 2022 $17/$30 call spreads’ bought 250X500, several presentations and an Investor Event 12/7
11/24/20 Pinduoduo (PDD) bull flag and buyer of 500 April $145 calls $24, over $1M
11/24/20 Pinduoduo (PDD) also 1500 January $115 puts sold to open $3.32
11/24/20 Marvell Tech (MRVL) back near highs and buyer 5000 January $44 calls $3.35 and 10,000 of the $50 calls $1.285
11/23/20 Zoom (ZM) sweep buys of 1000 March $840 max-strike calls $6 to $6.80 on the day, stock at $430
11/23/20 Tesla (TSLA) trading crazy volume in options again today, one that stands out the March $620 calls with 4500X trading that are adjusting from $560 calls
11/23/20 Invitae (NVTA) buyers of 1500 December $60 calls for $1
11/23/20 EXP World (EXPI) IV rising with buyers active 1675 Dec. $55 calls up to $3.10, cloud real estate brokerage with large opportunity
11/23/20 Snowflake (SNOW) opening sale 810 February $215 puts into early weakness for $10.10, similar to February put selling last week
11/23/20 Spotify (SPOT) moving to highs with 300 Dec. 4th (W) $265 calls bought $8.40 to $8.50
11/23/20 Align (ALGN) strong out of that pullback base on highs with 1000 Dec. $500 calls active with buyers this morning, Investor Day today
11/23/20 JD.com (JD) opening sale of 1000 December $87 puts for $3.90
11/23/20 Coupa Software (COUP) opening sale of 3,091 Dec. 4th (W) $275 puts for $1.10 ahead of earnings in mid-December
11/23/20 Facebook (FB) seeing massive buys of 9000 February $280 calls $13.55 to $14.25 to open
11/23/20 Bill.com (BILL) with the December $90 puts sold to open for $0.80/$0.75, over 3,350X
11/23/20 FarFetch (FTCH) buyers of the December $55 calls for $1.25 to $1.30, over 1300X
11/23/20 Shopify (SHOP) with 5,575 December $785 puts sold to open this morning from $2.95 to $2.60
11/23/20 Snap (SNAP) January $60 calls trading a quick 5000X $0.80 to $0.86
11/23/20 Nio (NIO) buyers active early for 3500 February $80 far OTM calls near $4.25
11/23/20 Anaplan (PLAN) 500 Dec $60 calls bought $6.10
11/23/20 Anaplan (PLAN) also seeing 2000 January $75 calls bought and Dec $55 puts sold in spreads

Topics covered:
1) 0:00 Announcements
2) 0:45 Market Commentary and Index Review (Nasdaq Composite, S&P 500, and Russell 2000)
3) 15:45 Stock Review – Mega Caps: AMZN, AAPL, MSFT, TSLA, CRM, QQQ (ETF)
4) 20:35 Stock Review – Software: NOW, FIVN, DOCU, BILL, TEAM, CRWD, DDOG, FSLY, APPS
5) 24:00 Stock Review – Semiconductors: NVDA, AMD, QRVO, LSCC, MTSI, COHU, AXTI, SMH (ETF)
6) 26:45 Stock Review – Medical Products/Biotech: TXG, TWST, NVTA, NVCR, LUNG, ALGN, ONEM, LMND, PGNY, SQZ, KALV
7) 32:40 Stock Review – General Ideas/Commentary: PYPL, REGI, SHOP, ETSY, CCS, BLK, JD, LAD
8) 35:45 Current Setups – INMD, EXPI, NVTA, ALGN, REGI
9) 38:05 Conclusion/Summary