Topics covered:
1) 0:00 Announcements
2) 0:25 Market Commentary and Index Review (Nasdaq Composite, S&P 500, and Russell 2000)
3) 11:20 Stock Review – Watch List/General Ideas/Commentary: AFRM, BILL, DDOG, AVLR, ZS, DOCS, DXCM, RDWR, HZNP, NVDA, CRCT, ALB, LTHM, ENVX, FND, ORMP
4) 17:55 Conclusion/Summary

Market Summary:
As you know, I like to analyze the market with an open-minded approach. I look at the positives and the negatives, and adjust my investment levels accordingly. Current negatives: 1) Three distribution days this week on the Nasdaq Composite. 2) The major indexes are below their 50-day moving averages. 3) Many Mega-Caps are starting to break down. Current positives: 2) The Fed is still providing a low interest rate environment. 2) We’re heading into Q4, which is traditionally strong. 3) There are still many stocks holding up well, which I review in this video.

So, what to do from here? Whenever there are mixed signals, there’s nothing wrong with being cautious until we get a clearer picture. I’m not sure if the selling this week is the start of a bigger correction, or just some end-of-the-quarter portfolio adjustments. I came into the week fully invested, and then mentioned in my Tuesday Memo that I reduced down to 80% invested. Today, I reduced even more. If you are on margin and looking to reduce exposure, you can do it by either cutting position sizes, or stopping yourself out of any positions that are breaking below their 50-day. On the stocks that are close to their 50-day, you can wait until the end of the week to see if they recover, or sell half depending on your risk tolerance. If you have a large cash position and your are looking to nibble, I present many stocks that are holding up well or near support. Either way, there’s nothing wrong with being defensive and using lighter than normal positions until we get a clearer picture. Good luck for the remainder of the week!

Unusual Option Activity
9/29/21 Horizon Therapeutics (HZNP) buyer of 2,690 November $115 calls for $5.40, spread with the $130 calls sold 5380X for $1.32/$1.33
9/29/21 Bill.com (BILL) with 500 November $290 calls bought this afternoon for $15.10
9/29/21 Tesla (TSLA) with 1000 January 2023 $770/$580 bull put spreads opening for $88.30
9/29/21 Datadog (DDOG) IV jumps with another 3,375 November $140 calls being bought up to $10.50
9/29/21 Palantir (PLTR) with 4000 February $25 calls bought today for $3.12 to $3.13
9/29/21 Snowflake (SNOW) with 150 May $265 puts sold to open $23.90
9/29/21 Affirm Holdings (AFRM) buyers today of 500 March $125 calls for $19.10
9/29/21 Zillow (Z) opening sales 1000 September 2022 $75 puts $10.25 to $10
9/29/21 Square (SQ) the December $240 calls being bought this morning 865X for $19.40 to $19.85
9/29/21 Sea Limited (SE) with 300 February $310 puts sold to open this morning around $31
9/29/21 Facebook (FB) bull risk reversal 1500X buys the June $390 calls and sells the $290 puts at a $0.10 debit
9/28/21 Snowflake (SNOW) large opening sale of 1500 November $290 puts for $15
9/28/21 Snowflake (SNOW) also with 1000 December $290 puts sold to open for $20.77 this afternoon
9/28/21 Sea Limited (SE) with 225 May $280 puts sold to open $27.70 and February $360 calls with 500X bought
9/28/21 ASML (ASML) sale to open 400 August 2022 $760 puts at $86
9/28/21 ASML (ASML) also January 2023 $760 puts sold to buy the $720/$800 call spreads, and 300 January $800 puts sold to open $63.50
9/28/21 Dynatrace (DT) with over 11,500 November $70 calls bought for $4.40 as the $75 calls roll back in strikes
9/28/21 Zoom (ZM) with over 1000 March $240 puts sold to open this morning near $19.60
9/28/21 Tesla (TSLA) seeing a spread in Oct 29th (W) expiry 1000X selling the $800/$750 put spreads and buying the $770 calls
9/28/21 Apple (AAPL) premium collectors active in October $136 puts this morning with 15,000 being sold to open
9/28/21 DataDog (DDOG) buyers of 6000 November $140 calls $8.30 to $9.60 into the morning lows
9/28/21 Sentinel One (S) buyers of another 1,325 October $60 calls this morning for $1.45 to $1.85, many being spread with the $70 calls again, similar to yesterday’s flows
9/28/21 Affirm Holdings (AFRM) opening buyer of 1000 October $122 calls for $8.50
9/28/21 Zoom Info (ZI) with the November $65/$75 call spread bought 600X1200
9/28/21 Asana (ASAN) buyer of 1600 February $60 calls for $45.96, adjusting the November $55 calls bought on 7/1
9/28/21 Nvidia (NVDA) with 1900 April $140 puts sold to open today for $3.85
9/27/21 Bill.com (BILL) buyers of 900 November $280 calls for $19.40 to $20.20 here to open, follows the 500 November $270 calls bought last week
9/27/21 Bill.com (BILL) calls up over 6000X now as Oct. $270 close 4000X
9/27/21 Sentinel One (S) with buyers of 1000 October $60 calls for $2.57 today, spread with the $70 calls
9/27/21 Tesla (TSLA) with 20,000 October $730 puts being sold to open today
9/27/21 Affirm Holdings (AFRM) opening seller 425 May $80 puts for $7.30 bid
9/27/21 Netflix (NFLX) with 1500 Oct. 29th (W) $610 calls opening $14.25 to $15 this morning, earnings 10-19
9/27/21 Snap (SNAP) seeing 1800 October $83 calls bought for $2.28 to $2.30
9/27/21 Dynatrace (DT) with 5000 November $75 calls being bought $3.40 to $3.70 offers
9/27/21 Diamondback Energy (FANG) with 1000 March $120 calls bought for $5.10 to $5.30 to open this morning
9/27/21 ASML (ASML) into Analyst Day with 350 August 2022 $780 puts sold to open $73.50 to $72.50, common strategy in the name lately
9/24/21 Adobe (ADBE) with 700 April $460 puts sold to open from $10 to $9.55