Yahoo Finance Article: https://finance.yahoo.com/news/why-the-recent-market-decline-a-shakeout-before-a-major-rally-182648220.html

OptionsHawk Article on Unusual Call Buying in ACLS: https://optionshawk.com/unusual-call-buys-in-attractive-small-cap-semi-equipment-play/

Topics covered:
1) 0:00 Announcements
2) 0:20 Market Commentary and Index Review (Nasdaq Composite, S&P 500, and Russell 2000)
3) 10:50 Stock Review – Mega Caps: NFLX, TSLA, CRM, AAPL, MSFT, AMZN, GOOGL, FB, ADBE, PYPL, SQ, SHOP, QQQ (ETF)
4) 15:15 Stock Review – Software: BILL, DDOG, NET, PANW, ZS, CRWD, OKTA, MDB, APPS, SNOW, U, TEAM, PERI, NOW
5) 20:50 Stock Review – Semiconductors: NVDA, AMD, ACLS, AMBA, MRVL, BRKS, SMH (ETF)
6) 25:40 Stock Review – Watch List/General Ideas/Commentary: AFRM, ALB, LTHM, LAC, ENVX, DXCM, SGEN
7) 28:10 Stocks near buyable ranges: ACLS, ALB, ENVX, DXCM
8) 29:00 Conclusion/Summary

Market Summary:
The health of the market continues to improve. Coming into this week, I was looking for a follow through day (FTD), for the major indexes to get back above their 50-day moving averages, and for the price action of stocks to improve. All three of these happened this week. The most important factor that led me to increase my investment levels this past week was the price action of stocks, as many growth stocks continued to prove themselves technically. I discuss many of them in this video.

Thursday’s FTD doesn’t mean we are out of the woods. I am still expecting some volatility this week as we need to get through this seasonally weak period (which usually ends around October 17-22). I am also expecting some “backing and filling,” which is normal after big week. For shorter-term traders, be patient and watch out for early morning flushes. We tend to see selloffs into the European close (around 11AM EST), so wait for the selling to slow down before making any new buys.

After a FTD, the most important thing is that we DO NOT see any heavy distribution. If the price action continues to improve, it could coincide with the market heading into a very seasonally strong period. In other words, this is the time to stay focused, as there could be some great opportunities ahead. Again, be patient and we will always take things day-by-day, but be ready for a possible new power trend, especially if we see another FTD over the next week or two. Enjoy the rest of your weekend!

Unusual Option Activity
10/15/21 Snap (SNAP) offer buyers of 1000 Oct. 29th (W) $29 calls $3.65 to $3.85
10/15/21 Snap (SNAP) 1900 Nov. 12th (W) $79 calls bought $5.15 to $5.20 as bullish positioning continues into results
10/15/21 Upstart Holdings (UPST) 700 November 5th (W) $430 calls being bought for $11.50 to $12
10/15/21 Ambarella (AMBA) with 2,500 January $170 calls bought for $19 as the December $145 ITM calls close and adjust higher from 9/9 buyers
10/15/21 Bill.com (BILL) opening sale 450 February $200 puts $11.60
10/15/21 Seattle Genetics (SGEN) buyer of 916 December $180 calls for $8.50, the 1,600 Dec. $185 calls bought remain in OI
10/15/21 Diamondback Energy (FANG) with 1100 December $110 puts sold to open $8.80
10/15/21 EOG Resources (EOG) spread in January 2023 sells 300 of the $75 puts to buy the $90/$125 call ratio spreads
10/15/21 Mirati Therapeutics (MRTX) buyer of 1000 January $230 calls for $6.20 to $6.50,
10/15/21 Analog Devices (ADI) with buyers of 1200 November $170 calls $4.70 to $4.85
10/15/21 Spotify (SPOT) with a large opening sale of 1000 January 2024 $240 puts for $50
10/15/21 Axcelis (ACLS) seeing very unusual buying of 725 March $55 calls $3.30 to $4 this morning
10/14/21 Zoom Info (ZI) buyers of 1000 November $65 calls bought for $5.90 to $6.20
10/14/21 Amazon (AMZN) with 1800 December $3295 puts sold to open for $130.02, adjusting down the $3300 puts from 8/12
10/14/21 Evolent Health (EVH) late buyers today of 1000 January $30 calls for $2.50 to $2.55
10/14/21 Nvidia (NVDA) seeing a lot of Oct 22nd (W) call action at $215, $217.5, $220 strikes
10/14/21 Asana (ASAN) over 1,500 November $120 calls bought today, smaller lots throughout the day from $7.80 to $9.10
10/14/21 Affirm Holdings (AFRM) with 900 March $130 puts being sold to open $17.60
10/14/21 Snap (SNAP) buyer 5000 next week $79 calls here $3 offer, reports 10-21
10/14/21 S&P 500 ETF (SPY) November $449 calls bought 30,000X midday $3.97
10/14/21 S&P 500 ETF (SPY) buyer 7500 Nov. 26th (W) $455 calls for $2.16
10/14/21 Upstart Holdings (UPST) 1500 of next week $380 calls hot early for around $1M premium
10/14/21 Upstart Holdings (UPST) now with 2000 October 29th (W) $360 calls opening for $23.03 as the $340 calls adjust higher 1500X
10/14/21 Upstart Holdings (UPST) also seeing 2000 October 29th (W) $500 calls bought for $1.15 to $1.40 today
10/14/21 Facebook (FB) next week $335 calls hot early 6500X for nearly $2M
10/14/21 Elastic (ESTC) seeing 350 Feb $195 calls bought $10.40 to $10.50
10/14/21 Sci-Play (SCPL) with 2000 May $30 OTM calls bought for $1.02 to $1.03
10/14/21 Bluebird Bio (BLUE) 2500 Nov 20 puts sold to open for $1.30