Topics covered:
1) 0:00 Announcements
2) 0:25 Market Commentary and Index Review (Nasdaq Composite, S&P 500, and Russell 2000)
3) 11:00 Stock Review – Mega Caps: TSLA, MSFT, AAPL, GOOGL, QQQ (ETF)
4) 12:20 Stock Review – Software: BILL, DDOG, NET, CRWD, ZS, U, APPS
5) 16:10 Stock Review – Semiconductors: NVDA, AMD, ACLS, SMH (ETF)
6) 17:40 Stock Review – Medical Products DXCM, SWAV, NARI
7) 19:20 Stock Review – Watch List/General Ideas/Commentary: AFRM, MQ, SOFI, CELH, BROS, SI, SGEN, HRMY, RKLB
8) 23:30 Conclusion/Summary

Market Summary:
We’re in a very strong liquidity-driven market. A few weeks ago, I discussed the possibility of a new uptrend for three reasons: 1) The upcoming favorable seasonality, as mid-October until year-end tends to be strong. 2) The technicals were improving and many stocks were holding up well during the September pullback. 3) The equity friendly environment being provided by the Fed.

Speaking of the Fed, they meet every 6 weeks and announced on Wednesday they would taper their bond purchases. As I expected, this would be a very dovish taper. Two things stuck out at me today: 1) In their statement, they said they are prepared to adjust the pace of their taper as warranted. In other words, if conditions get worse, they will have the market’s back. 2) When asked if the market was correctly pricing in two rate hikes in 2022, Fed Chair Powell avoided answering the question. My interpretation is they are going to be VERY slow raising rates…if they ever raise them at all. Bottom line, don’t argue with this. We are in a unique time in history where the Fed is providing an insane amount of liquidity. As I’ve been saying, take advantage of it until the warning signs show up. If you’re worried that the Fed’s actions will ruin the future for your grandkids, then don’t have grandkids, lol. Problem solved!

Regarding the current market, half of me sees the incredible strength and is thinking this market could continue to grind higher, and the other half of me thinks statistically we are due for a normal pullback to the 21-day. The way I’m dealing with this conflict is to take some profits into the strength and keep exposure to some of the leaders. As always, your decisions should be based on your own timeframe and investment objectives. As a trader, I realize that it can be frustrating when you take profits only to see things go higher. Two responses to this: 1) It’s just part of the game and accept that you will never get the high or the low. 2) Don’t forget about the ones that you sell that go lower.

I didn’t have any setups in tonight’s video. I’m going to do my best to stay focused on the strong sectors and leadership stocks into year-end. You know most of the list: TSLA, MSFT, NVDA, AFRM, DXCM, etc. Unfortunately, these stocks are currently extended beyond proper buy points. A few stocks that are still near buy points include: MQ, U, AAPL, and GOOGL.

Unusual Option Activity
11/3/21 Nvidia (NVDA) buyers today of 975 March 2023 $500 calls for $8.80 to $9.30
11/3/21 Marqeta (MQ) sellers active in Mar $25 puts again 2425X
11/3/21 Airbnb (ABNB) with 2,600 Jan 2024 $175 puts sold to open for $40.59, adjusting some Jan 2023 $145 puts.
11/3/21 Airbnb (ABNB) also with 1,400 January 2024 $140 puts sold to open for $19.15
11/3/21 Z-Scaler (ZS) with 1650 November $340 calls bought for $3.90 after the size call buys late yesterday
11/3/21 ChemoCentryx (CCXI) the February $45 calls bought 500X today for $4.90 to $5
11/3/21 Inari Medial (NARI) 1000 November $100/$115 call spreads are bought for $2.29, earnings 11-9
11/3/21 Academy Sports (ASO) seeing 1,500 December $48 calls bought for $2.65 and spread with the $60 calls sold for $0.40
11/3/21 Academy Sports (ASO) late day buyer 10,000 December $50/$60 call spreads at $2
11/3/21 Nasdaq 100 3x ETF (TQQQ) seeing 3000 December $165 calls open for $2.46M as November positioning adjusts
11/3/21 Russell 2000 3x ETF (TNA) with 3000 Dec. $110 calls opening for $1.9M as some other calls adjust
11/2/21 Z-Scaler (ZS) with a buyer of 1250 January 2023 $360 calls this afternoon for $44.20 to $45.75
11/2/21 Z-Scaler (ZS) with 2000 July $360 calls bought to open for $33.50 in a large late day trade
11/2/21 Tesla (TSLA) size lot buys 3400 June $975 calls this morning for $116M
11/2/21 Tesla (TSLA) also with 4450 September 2022 $975 calls opening today for $155M
11/2/21 Advanced Micro (AMD) with over 4000 November $122 calls bought this morning from $6.10 to $6.35
11/2/21 Apple (AAPL) with 5,000 December 10th (W) $155 puts sold to open this morning for $6.20
11/2/21 Airbnb (ABNB) opening sale 500 January 2024 $170 puts for $37.90
11/2/21 Marqeta (MQ) with 840 Mar $27.50 puts selling to open $4.20 bids
11/2/21 Microsoft (MSFT) the March 2023 $335 calls up over 6000X now with more blocks at $38.90 to $39
11/2/21 Affirm Holdings (AFRM) 500 Nov21 172.5 Calls bought for $5.70
11/2/21 Nvidia (NVDA) with 2,250 January 2023 $500 OTM calls bought from $5.80 to $6.10
11/2/21 Snowflake (SNOW) buyers of 400 December $375 calls this morning for $16.50
11/2/21 S&P 500 ETF (SPY) morning buyer of 8500 December $466/$480 call spreads
11/2/21 Russell 2000 ETF (IWM) with 1000 ITM March $229 calls opening $14.81
11/2/21 Biotech ETF (XBI) buyer 1470 March $134 calls to open near $7.05 and 1280 June $135 calls opening near $9.45 for $1.2M
11/1/21 Affirm Holdings (AFRM) late day opening sale of 1000 February $150 puts for $22.90
11/1/21 Spotify (SPOT) late day buyer 200 April $300 calls $33.10 to $33.70
11/1/21 ChemoCentryx (CCXI) with 400 February $40 calls bought today $5.50 to $5.60
11/1/21 Inmode (INMD) seeing 300 each of the January 2023 $110/$130 and $115/$135 call spreads bought this afternoon
11/1/21 Bill.com (BILL) sweep buyer 500 February $310 calls $33.90 offer and has the 2500 of the $300 calls bought in OI
11/1/21 Nvidia (NVDA) buyer 750 March 2023 $310 OTM calls for $31
11/1/21 Salesforce (CRM) buyer 600 February $330 OTM calls at $7.90 offer to open
11/1/21 Axsome Therapeutics (AXSM) spreads today seeing December $40 puts sold to buy $65/$85 call spreads over 1600X
11/1/21 Apple (AAPL) opening seller of 5000 Dec. 3rd (W) $149 puts for $3.75 on the open.
11/1/21 Apple (AAPL) 1375 May $120 puts sold $3 to open.
11/1/21 Nasdaq (QQQ) with 9,500 November 29th (W) $386/$393 call spreads bought to open for $3.32
11/1/21 Tesla (TSLA) with 5000 June 2022 $1125 calls opening as a $98M position adjusting the January $1010 calls
11/1/21 Tesla (TSLA) also with 4,000 January 2024 $650 ITM calls bought today for $589.85, the March $650 calls from 5/20 closing and rolling out
10/29/21 Nvidia (NVDA) with 1000 January 2023 $425 calls bought from $8.20 to $8.50
10/29/21 Microsoft (MSFT) with 6000 February $370 calls bought for $3.75, rolling up the Nov $315 calls bought in size in mid-August