Topics covered:
1) 0:00 Announcements
2) 0:15 Market Commentary and Index Review (Nasdaq Composite, S&P 500, and Russell 2000)
3) 12:20 Stock Review – Energy: APA, MPC, DVN, FANG, EOG, HES, MTDR, VLO, XOP (ETF), XLE (ETF), OIH (ETF)
4) 16:25 Stock Review – Watch List/General Ideas/Commentary: BROS, MA, AAPL, CF, MOS, ZIM, EXPE
5) 19:00 Conclusion/Summary

Market Summary:
We had a Day 6 Follow Through Day (FTD) on Monday for the Nasdaq Composite and S&P 500. Following this, I emailed a note to members saying that I thought this FTD would fail. I also discussed it during Monday’s Webinar. My reasoning is in the email and I just think the market needs more time. So, what to do from here? Remain defensive! I am currently 20% invested, and it’s mostly light positions in some energy stocks and ETFs. I’m not sure if we’ll make new lows from here or stay in a range. Either way, there are very few stocks setting up and I suggest continued patience.

In this video, I review about 20-25 stocks on my watch list. You may ask “If you think the market is going lower, then why discuss stocks?” A few reasons: 1) If I’m wrong and the market sets up quickly, I want to be prepared. 2) No matter what is going on in the market, I always curate a watch list. 3) Some members want to trade, so I want to at least give them a chance by providing a strong list. Keep in mind that if you trade any of these names (or anything else for that matter), please keep your positions light! Make sure to get strong entry points and always manage risk. Also, don’t get discouraged. There will be tremendous opportunities later this year. Just protect capital and protect confidence until market conditions improve. Thank you and good luck for the remainder of the week.

Unusual Option Activity
2/2/22 Nasdaq 100 ETF (QQQ) with 9500 March 31st (Q) $342 puts being bought with many spread vs. $324 strike
2/2/22 Biotech ETF (XBI) with 5000 March 11th (W) $91.5/$82 put spreads bought
2/2/22 Expedia (EXPE) seeing April $190 calls open 2870X at $13.40 as Feb. $180 adjust
2/2/22 Dutch Bros (BROS) buyer of 1,000 March $65 calls for $3.59 and spread with the $50 puts sold to open for $3.46
2/2/22 Schlumberger (SLB) opening seller 1200 March $37.5 puts for $1.58
2/2/22 Occidental Petroleum (OXY) with near 4,000 August $35 puts bought today from $3.95 to $4
2/2/22 Marathon Petro (MPC) up 5.5% after a great report and 1000 March $80 puts selling to open $4.90
2/2/22 Holly Frontier (HFC) buyer of 1000 February $35 calls for $2.25/$2.30 to open today
2/2/22 Apple (AAPL) with 5000 April $140 calls opening as an $18M position with February adjusting out a couple months
2/1/22 Baker Hughes (BKR) late day sweep buys 2500 March $30 calls $0.60 offer
2/1/22 Valero (VLO) buyer of 200 January 2024 $70 calls for $20.57 as some calls roll up
2/1/22 Diamondback Energy (FANG) opening sales of 650 March $135 puts for $13.30 to $12.95, adjusting some short puts back
2/1/22 MidCap ETF (MDY) with June $490/$520 call spreads 1475X bought and September $490/$520 with 1000X bought
2/1/22 S&P 500 ETF (SPY) March $427 puts active this morning with buyers trading 13,500 for over $9.5M
2/1/22 Meta (FB) with over 5,000 March $335 calls sold to open from $9.10 to $8.70 ahead of earnings tomorrow
2/1/22 CVS Health (CVS) with 4000 May $97.50 puts sold to open for $3
2/1/22 Vertex Pharma (VRTX) seeing 420 September $240 puts sold to open for $23.70
2/1/22 Google (GOOGL) with 1450 Feb. $3000 calls being bought $13.50 to $14.90 late day into earnings
2/1/22 Mosaic (MOS) buyer of 500 September $45 calls today for $5.40
1/31/22 Marvell Tech (MRVL) buyer of 500 September $65 ITM calls for $13 today
1/31/22 Bunge (BG) with 650 March $100 calls bought today between $3.40 and $3.80 to open
1/31/22 Vertex Pharma (VRTX) seeing 650 Feb 11th (W) $232.5 calls bought $15.50 to $15.70 as the Feb 4th (W) $225 calls roll out
1/31/22 Deere (DE) with 1000 February $375/$370 bull put spreads opening this afternoon for $2.05
1/31/22 Valero (VLO) with 1000 February $78 puts sold to open today between $1.38 and $1.42
1/31/22 Tesla (TSLA) buyer 1100 Feb. 25th (W) $895 calls for $61.60 to $63
1/31/22 Netflix (NFLX) seeing 5,000 June $390 calls bought for $60.55 to open, a $30.275M trade
1/31/22 Pfizer (PFE) opening sale of 1000 June 2023 $52.50 puts for $7.65