Topics covered:
1) 0:00 Announcements
2) 0:20 Market Commentary and Index Review (Nasdaq Composite, S&P 500, and Russell 2000)
3) 7:20 Section on Percent Invested in a Higher Volatility Environment
4) 10:35 Stock Review – Energy: XLE (ETF), XOP (ETF), OIH (ETF), USO (ETF), DVN, OXY, MRO, MPC, VLO, EQT, APA
5) 13:50 Stock Review – Watch List/General Ideas/Commentary: CELH, PRCT, SMCI, LNTH, LTHM, HWM, ON, WWE, ZIM, HALO, SWAV, EA, CYTK, TPTX
6) 23:00 Stocks near buyable ranges: ALB, WDC
7) 25:10 Conclusion/Summary

Market Summary:
The message is the same: Stay defensive and be patient! If you are going to trade, PLEASE keep positions light to help deal with this higher volatility environment. I am open-minded that we might have bottomed, but my instincts tell me we haven’t. I would need to see the market prove itself better. Specifically, I would like to see more volume come in, more stocks setting up, and the major indexes regaining their 50-day moving averages. I still don’t see that happening until the Fed is done with this rate hiking cycle. In the meantime, there are some stocks acting well, but again, please keep your positions light. I think the volume and volatility will pick up over the next two weeks with the Fed meeting coming up on June 15th, and the regular cycle options expiration that week.

In this video, I discuss how different investment levels can result in higher volatility for your account. As always, it depends on your position size and what your portfolio is made up of (growth stocks, defensive stocks, bonds, options, etc.). The point of this section is to encourage members to make decisions based on their own risk tolerance and to develop a style that works for you. I will try to stay around 20-30% invested for now in some of the strongest stocks I can find (subject to change depending on market conditions). I also discuss how the major indexes are holding their 21-day moving averages, which is a positive so far. I would like to see them hold this level over the next week or two, and continue to see the market prove itself before getting more invested. Thank you and good luck this week!

Unusual Option Activity
6/3/22 Nasdaq 100 ETF (QQQ) with 5000 Dec. 30th (Q) $300 calls opening for $17M this morning
6/3/22 Nasdaq 100 ETF (QQQ) also opening sellers 7000 June 24th (W) $305 puts worth $5M
6/3/22 Acadia (ACAD) more bull flow as June 24th (W) $21 calls open 5000X at $2 and the $12 puts are sold 3500X for $1
6/3/22 ChargePoint (CHPT) buyer 60,000 July $15 calls $1.04 as June 10th (W) adjust
6/3/22 Tesla (TSLA) with 1000 July $680 puts opening $4.9M as June 10th (W) $700 adjust
6/3/22 Schlumberger (SLB) with 1500 September $50/$45 bull risk reversals opening at small credit
6/3/22 Chevron (CVX) with 1200 June $182.50 puts sold to open 7.10 bid
6/3/22 SeaGen (SGEN) buyer 1330 July $160 calls $5.90 to $6.40 adjusting the June $160 calls
6/2/22 Russell 2000 ETF (IWM) with 5000 July $184 puts opening for $3M today as June 30th (Q) puts adjust
6/2/22 Eli Lilly (LLY) trade opens 2000 August $320/$260 bull risk reversals for $6.20
6/2/22 Blackstone (BX) size buyers into the close of 3500 July $130 calls $3.95 offer
6/2/22 Lithium America (LAC) opening seller 1300 November $15 puts for $1.25
6/2/22 Microsoft (MSFT) buyer 1000 Dec. $300 calls for $12.67
6/2/22 Microsoft (MSFT) also a buyer 1000 Dec. $310 calls $9.48
6/2/22 Bill.com (BILL) sale to open 1200 Nov. $170 calls for $15.20
6/2/22 Diamondback Energy (FANG) 600 July 150 puts sold to open $8.80
6/2/22 Halliburton (HAL) buyer of 1000 September $42 calls for $3.75
6/2/22 Align (ALGN) seeing 850 January $290/$230 bull risk reversals open for $16.90 debits
6/2/22 Abbott Labs (ABT) trade opens 3265 January $125/$105 bull risk reversals at $0.75 debit
6/2/22 Theme in options flows today is large bull risk reversals Jan. 2023 expiration in quality large caps, seeing positive reward/risk over next 6 months CRM, ALGN, XPO, DT, ABT
6/1/22 Advanced Micro (AMD) afternoon buyers of 3500 July 1st (W) $105 calls up to $5.25 for nearly $2M
6/1/22 Diamondback Energy (FANG) buyer of 1000 July $175 calls for $3.40
6/1/22 Sanderson Farms (SAFM) action late day with 1000 December $200 calls bought $6.30 to $7.70