Topics covered:
1) 0:00 Announcements
2) 1:25 Market Commentary and Index Review (Nasdaq Composite, S&P 500, and Russell 2000)
3) 9:10 Stock Review – Mega Caps: AMZN, AAPL, MSFT, TSLA, CRM, QQQ (ETF)
4) 12:20 Stock Review – Software: CRWD, ZS, OKTA, FSLY, NET, FIVN, NOW
5) 15:30 Stock Review – Semiconductors: NVDA, AMD, AXTI, LSCC, TSEM, TSM, SMH (ETF)
6) 20:00 Stock Review – Medical Products/Biotech: HALO, ALGN, NVTA, NVCR, PSNL, INMD, TXG
7) 25:15 Stock Review – General Ideas/Commentary: Z, AAXN, PENN, DKNG, SNAP, PINS, V, MA, LL, FND, EXPI
8) 29:20 Pullback Buys – AMD, LSCC, NET, FSLY
9) 30:00 Current Setups – FLGT
10) 31:30 Conclusion/Summary

Market Summary:
The Nasdaq Composite drifted higher on Monday and Tuesday of this week (on lighter volume), and the index kept getting stretched from its 21-day EMA. As I’ve mentioned many times, in strong uptrends it’s perfectly normal for indexes and strong stocks to pull back to their 21-EMAs along the way. Wednesday’s drop occurred on higher volume, but it’s only one recent distribution day. I don’t get concerned until I see a cluster of them. Whenever the market gets stretched, it’s up to members to make decisions based on their own timeframe and investment objectives. I do my best to provide strong entry points and it’s up to you to manage your trades from there. A great guideline is to take smaller positions and give these stocks time to work. Any Friday close below the 10-week moving average would be an area to stop yourself out.

From here, I wouldn’t be surprised to see a little more weakness into Thursday and Friday. If we get that, I would look to put some money to work because next week is the week of regular cycle options expiration, which tends to trend to the upside. While going over my screens to prepare for this video, I didn’t find too many setups, but I think there will be some good pullback buys if we see weakness over the next two days. Again, if this is too much trading for you, take smaller positions and relax. I am still bullish into year-end and any dip over the near-term would be buyable in my view. Good luck for the remainder of the week!

Unusual Option Activity:
12/9/20 S&P 500 ETF (SPY) size buyers came into afternoon lows for 5000 January 22nd (W) $371 calls $6.43 to $6.50
12/9/20 Schrodinger (SDGR) 1300 Dec $70 calls bought
12/9/20 Sea Limited (SE) with 2600 December 31st (W) $240 calls opening $2.70 as the $215 calls adjust
12/9/20 Zillow (Z) opening sale 300 June $115 puts $17.05
12/9/20 Pluralsight (PS) jumpy with 3300 Dec $20 calls hot, recent talk it may be for sale
12/9/20 Virgin Galactic (SPCE) buyer of 3000 December $44 calls as the $39 calls close 4500X and roll up
12/9/20 Square (SQ) buyer 3000 December $240 calls $1.31, above offer
12/9/20 Inmode (INMD) 180 May $35 puts are sold to buy $45/$60 call spreads, interesting bull covered risk reversal
12/9/20 Uber (UBER) 2000 far OTM Jan $75 calls bought into DASH IPO
12/8/20 Biocryst (BCRX) big jump this week and buyer of 1000 ITM January 2022 $4.50 calls for $4.30 today
12/8/20 Penn Gaming (PENN) with the strong breakout move today and June $90 calls seeing 1300X bought
12/8/20 Unity Software (U) highs of the day and 500 December $195 calls bought $3.40
12/8/20 CrowdStrike (CRWD) large buys of 2000 March $185 calls $16.70 to $17.20
12/8/20 Micron (MU) with 4000 January $92.50 calls being bought $4.90 offer
12/8/20 Fastly (FSLY) today with 1000 Dec. 31st (W) $110 calls bought, also seeing 1000 of the $90 puts sold to open
12/8/20 Square (SQ) the January 2023 $280 ITM puts sold to open 2,000X for $108
12/8/20 Advanced Micro (AMD) with 1,500 ITM July $105 puts sold to open this morning between $23.40 and $23.55
12/8/20 Amazon (AMZN) seeing interesting strategy today with February $3400/$3500/$3600 call butterfly trading 2000X4000X2000, pricing around $5.50 for that spread with $100 payout potential on a close at $3500 on Feb. OpEx
12/8/20 Penn Gaming (PENN) 3500 weekly $67 calls bought with this pop
12/8/20 Tesla (TSLA) with 17,900 September $720 calls opening a $230M position as the June $660 from 11/27 adjust
12/8/20 Zoom (ZM) seeing similar structured bull risk reversals as it saw into weakness last week, the June $310 puts selling to open 2000X with the June $410 calls buying to open 1000X
12/8/20 Z-Scaler (ZS) with 1000 January $200 calls bought today around $8.45
12/8/20 CrowdStrike (CRWD) post-earnings drift continues, buyer 200 Apr $240 far OTM calls for $6
12/8/20 Cloudflare (NET) 5000 weekly $90 calls hot early
12/8/20 Cloudflare (NET) buyer opening 1500 December 31st (W) $95 calls for $1.80 now, adjusting some Dec. $85 calls
12/8/20 Pinduoduo (PDD) with 6000 January $185 calls, hot with buyers in opening 20 minutes
12/8/20 Virgin Galactic (SPCE) buyer 2000 Dec. 31st (W) $43 calls for $1.26
12/8/20 Virgin Galactic (SPCE) December 31st (W) $43 calls quickly up to 6,450X, their new launch window opens 12/11
12/8/20 SmartSheet (SMAR) higher by 15% on earnings and buyer opening 500 January 2022 $90 calls for $10 today
12/8/20 Snap (SNAP) strong early with another 2,000 April $60 calls bought $4.15 to $4.30, over 14k in open interest
12/7/20 DraftKings (DKNG) with 1350 May $40 puts sold to open $4.50 to $4.60
12/7/20 Tower Semi (TSEM) another 1000 July $27/$35 call spreads bought today with the $22 puts sold
12/7/20 NVIDIA (NVDA) $6M position opens with 1250 January $510 calls $48.35 as December adjust
12/7/20 Zillow (Z) opening seller 275 January 2022 $115 puts for $27.55
12/7/20 Pinterest (PINS) the January 2022 $55 puts sold to open 1300X for $10.50 to $10.40
12/7/20 UpWork (UPWK) buyers for 5,500 January $40 calls up to $2 to open and follows 2,250 April $35 calls bought around $5.20 on 11/16
12/7/20 Snap (SNAP) buyers of 1,945 January 22nd (W) $50 calls for $3.45 to $3.50
12/7/20 Tesla (TSLA) with 8000 December 31st (W) $620 calls bought for $53.90 as 5,500 of the $570 calls close and adjust higher
12/7/20 Microsoft (MSFT) early bull flow with 1870 September 2021 $230 calls bought $15.50 to $15.80 offers
12/7/20 Sea Limited (SE) with 500 January 2023 ITM $240 puts sold to open for $88, adjusting some January 2022 puts back
12/7/20 Shutterstock (SSTK) 1300 Dec $75 calls w/ buyers, 4th straight day of unusual Dec call buys
12/7/20 Social Cap B (IPOB) with 1,000 ITM January $15 calls bought $10.50 to $10.60 today, entity that will soon become OpenDoor
12/7/20 Advanced Micro (AMD) 13,000 OTM weekly $102 calls hot in opening 15 minutes
12/7/20 Zillow (Z) with 1000 December $114 calls bought early, name with some bullish weekly call spreads in OI from last week