Topics covered:
1) 0:00 Announcements
2) 0:50 Market Commentary and Index Review (Nasdaq Composite, S&P 500, and Russell 2000)
3) 7:20 Stock Review – Energy/Commodity: XLE (ETF), XOP (ETF), OIH (ETF), BKR, BTU, CENX, OXY, HP, CVX, TDW, CF, MOS, BG, DVN, CPE, HES, LPI, MPC
4) 11:40 Stock Review – Watch List/General Ideas/Commentary: SMH (ETF), TSM, ACLS, AOSL, ON, PANW, DDOG, LLY, STE, ACAD, AMLX, PSA, EXR, CUBE
5) 16:45 Conclusion/Summary
Market Summary:
The message is the same: Stay defensive, be patient, and reman disciplined in your trading. The major indexes were down for the week on heavier volume than the previous week. Also, the Nasdaq Composite saw distribution days last Tuesday and Friday. Bottom line: The institutions are still selling stocks and patience is required until we see signs of this selling slow down. The majority of the stocks showing up on my screens continue to be Energy and Commodity related. If you are going to trade stocks, I prefer you gravitate towards some of these stronger names. However, make sure to get strong entry points, use lighter than normal positions to help deal with the higher volatility environment, and make sure to stick to a loss cutting discipline if any of your positions turn against you.
To be perfectly honest, I prefer that members simply sit out because it’s not worth the “risk to aggravation” right now. For me, any of the money I’ve made from Energy stocks has been mostly offset by other sectors. Thankfully, I’m keeping things light and maintaining a high cash position, but overall, it’s just not worth it. When we get a new, sustained uptrend, the money will be easier to make because we will be in a healthier and lower volatility environment. If you have any questions about the stocks I review in this video or anything else not discussed, you can ask them during the next webinar which will be this Sunday, March 6th at 11AM EST. Thank you and enjoy the remainder of your weekend!
Unusual Option Activity
3/4/22 Russell 2000 ETF (IWM) with 3400 August $171 puts being bought this morning for nearly $2.5M
3/4/22 Nasdaq 100 ETF (QQQ) seeing 20,000 December $295 puts open for $18.80 today as the $310 puts bought on 2/4 adjust lower
3/4/22 IPO ETF (IPO) with a buyer of 5000 April $41 puts for $3.45 as the $43 puts close 4000X and adjust down
3/4/22 Celsius (CELH) buyer of 2100 January 2024 $75/$50 bull risk reversals today for $0.50
3/4/22 Devon Energy (DVN) buyer of 600 October $65 calls for $6.60 to $6.80
3/4/22 Chevron (CVX) buyers of 2000 April $180 OTM calls for $2.05 to $2.15 as the $155 calls adjust higher
3/4/22 Schlumberger (SLB) with 4000 April $45 calls bought up to $0.66 today
3/4/22 Bristol Myers (BMY) buyers in April 8th (W) $71 calls 1500X near $0.96
3/4/22 Union Pacific (UNP) seeing 1000 April $235 puts sold to open today for $3.20
3/4/22 Norfolk Southern (NSC) buyers mid-day for 1000 April $300 OTM calls from $4.90 to $5.90 to open
3/4/22 Lockheed Martin (LMT) with buyers of the June $600 far OTM calls 1250X for $3.80 to $4.40
3/4/22 Bill.com (BILL) buyer of 500 August $170 puts $22.10 to $22.80 for over $1M
3/4/22 Apple (AAPL) with 3,000 November $175 calls sold to open today for $13.10
3/4/22 Acadia (ACAD) buyer of 1000 April $25 calls late day for $2.00 to $2.05
ACAD still has the size in the March ITM calls from recent buyers across the $20, $21, and $22 strikes
3/3/22 S&P 500 ETF (SPY) large sweep buyers of 10,000 March 31st (Q) $433 puts here for $11.24 to $11.25
3/3/22 Oil Services ETF (OIH) with 2200 June $335 calls bought $4.10 to $4.50
3/3/22 Oil & Gas ETF (XOP) buyer of 15,000 April $135/$150 call spreads at $2.15 as March spreads adjust higher
3/3/22 Bunge (BG) IV surging here with 4250 July $130 OTM calls being bought $2.20
3/3/22 Occidental (OXY) buyers 3000 OTM May $70 calls $0.84
3/3/22 Merck (MRK) with 10,000 April $80 calls sold to open $1.06
3/3/22 Century Aluminum (CENX) buyers of nearly 1000 September $40 calls this afternoon for $3.40
3/3/22 Nvidia (NVDA) opening sale of 1100 July $240 puts for $29.30
3/3/22 Apple (AAPL) buyers 7500 next week $167.5 puts $3.55
3/3/22 Nutrien (NTR) with 1500 January $70 puts sold to open for $4.50
3/3/22 Mosaic (MOS) seeing 500 January $55/$70 call spreads bought for $5