Topics covered:
1) 0:00 Announcements
2) 0:15 Market Commentary and Index Review (Nasdaq Composite, S&P 500, and Russell 2000)
3) 5:50 Stock Review – Watch List/General Ideas/Commentary: SWAV, GH, XBI (ETF), RVNC, AMLX, DICE, RYTM, SNDX, FSLR, ENPH, LNTH, ALB, CINC, DINO, XOM, CF, XLE (ETF), XOP (ETF)
4) 15:50 Conclusion/Summary

Market Summary:
Two weeks ago, riskier assets held up better than the overall market (both percentage wise and volume wise). Coming into this past week, I discussed being patient and staying defensive, but not to get too negative as the majority of people are bearish. The week started off strong as new money flowed into the market and the market bounced to shakeout some of the excess bearishness. We saw a Day 5 follow through day on the Russell 2000 on Tuesday and I held a webinar stressing to be patient and let the market prove itself. The 5 things we needed to see included: 1) Sideways digestion on light volume 2) No distribution days 3) More stocks to set up 4) Additional follow through in the Russell 2000 5) The S&P 500 and Nasdaq Composite to flash FTDs.

Bottom line: The market started to show some very early positive signs. I stressed to give it time to prove itself but it failed. Both the price action of stocks and the major indexes were disappointing, as economic data came out which will likely keep the Fed hawkish. The conclusion is going back to being super defensive until market conditions improve again. The distribution at the end of the week combined with no stocks setting up tells me to remain in a heavy cash position and wait patiently for healthier times. I will continue to stay on top of the market and maintain a watch list of stocks holding up well, but for now, there’s not much to do in the market. Thank you and enjoy the remainder of your weekend.

Unusual Option Activity:
10/7/22 Nasdaq 100 ETF (QQQ) opening sale 2000 Dec 272 puts 15.29 to 15.04 in risk reversals buying the $275 calls $15.26
10/7/22 Russell 2000 ETF (IWM) buyers 20,000 November $164 puts early $4.70
10/7/22 China ETF (FXI) buyer 25,000 Oct. 27.5/29.5 call spreads for 0.35
10/7/22 Lululemon (LULU) March put buyers again with 335 March 290 today for around $1M
10/7/22 Marathon Petroleum (MPC) opening seller 1000 November 110 calls 5.30 to 5.20
10/7/22 Devon Energy (DVN) with 2000 April 85 calls sold to open 6.80
10/7/22 Cano Health (CANO) Nov $10 calls up to 70,000X with reports of CVS in talks to acquire as Oct and Dec 9 calls adjust
10/7/22 Apple (AAPL) opening seller 15,000 February $130 puts 7.40 to 7.20
10/6/22 Schlumberger (SLB) late day action opening 5000 Dec $45/$37.5 bull risk reversals at $1.10
10/6/22 Nasdaq 100 ETF (QQQ) opening seller of 2750 Nov. 11th (W) $295 ITM puts and buyer of 20,000 Nov. 4th (W) $295 calls $4.64
10/6/22 Russell 2000 ETF (IWM) buyer 1700 February $173 puts $11.70
10/6/22 Arcus Biosciences (RCUS) unusual buy 4000 November 35/40 OTM call spreads for $1
10/6/22 Revance Therapeutics (RVNC) opening sale 2000 November 30 puts for 2.40
10/6/22 Tesla (TSLA) opening seller 800 April 175 puts for 15.85
10/6/22 Netflix (NFLX) opening seller 1000 October 242.50 calls at 15.35 bid
10/6/22 Relmada Therapeutics (RLMD) opening seller for 1000 March $55 calls at $9.50
10/6/22 Bill.com (BILL) with 500 November $165 calls opening $12.30 to $12.60
10/6/22 Apple (AAPL) buyer 2500 Nov. 11th (W) $135 puts $3.45
10/6/22 Google (GOOGL) spreads 1500X selling December 91 puts to buy the 105/120 call spreads
10/6/22 Google (GOOGL) also opening seller of 3000 April 23rd $120 calls at $5.00 down to $4.90