Topics covered:
1) 0:00 Announcements
2) 0:20 Market Commentary and Index Review (Nasdaq Composite, S&P 500, and Russell 2000)
3) 4:25 Stock Review – Biotech: XBI (ETF), IBB (ETF), BTAI, RVNC, VTYX, AMLX, AXSM, VRDN, IMCR, PCVX, VRNA
4) 9:10 Stock Review – Semiconductors: SMH (ETF), NVDA, AEHR, ACLS, ALGM, MBLY, PI, KLAC, AMKR
5) 13:05 Stock Review – Software: AYX, ESTC, SPLK, MODN, AI, VEEV, OSPN
6) 16:35 Stock Review – Watch List/General Ideas/Commentary: AXON, URI, FOUR, VAL, TDW, INSP
7) 20:00 Conclusion/Summary

Market Summary:
The pattern of up days on strong volume and down days on lighter volume continues. Although we’ve seen two down days so far this week (Monday and Wednesday), they occurred on lighter volume showing that the institutions are not aggressively selling shares. Coming into this week, I mentioned that we were extended from the 21-day moving average on the major indexes. I also mentioned to expect some weakness into Thursday of this week, as that’s when we tend to get a low into regular cycle options expiration next week. Again, these are all probabilities and trends. The best thing to do is use the 21-day as your guide. In other words, when the market and individual stocks get extended from this level, expect some weakness, profit taking, and/or normal pullbacks.

In this video, I remind members that when we are extended short-term, this is when you need to make decisions based on your investment objectives and overall timeframe. Some options include to take full profits, partial profits, or be patient in your positions if you are a longer-term holder. Either way, getting those strong entry points will really help because if you have a profit, you can make your decisions from a position of strength. I am currently 50% invested and will look to put more money to work when the pullback comes. If the market doesn’t pull back to the levels I’m looking for, I am happy with the positions I am in and I have no problem being patient. Again, focus on those strong entry points and use the 21-day as your guide. Thank you and good luck for the remainder of the week!

Unusual Option Activity:
2/8/23 Homebuilders ETF (XHB) buyers 4000 March $69 puts $2.04 offer
2/8/23 S&P 500 ETF (SPY) April $392 puts popular with buyers today 9000X for around $6M
2/8/23 Semiconductor ETF (SMH) seeing 2000 March $250 puts bought 10.85 offer sweeps
2/8/23 Russell 2000 ETF (IWM) opening seller 3000 March 2024 $190 puts for 13.02
2/8/23 Russell 2000 ETF (IMM) near-term seeing buyers of 10K Feb. 24th (W) $189 puts for $1.93
2/8/23 FreshPet (FRPT) buyer 10,000 May $75 calls $5.45 as the $70 calls adjust
2/8/23 Chipotle (CMG) with 200 June $1620 calls opening, $2.8M position, as weekly calls adjust from ITM
2/8/23 Vertex Pharma (VRTX) with 235 Jan. 2025 $310 calls bought for $57
2/8/23 Sigma Lithium (SGML) with 3000 July $22.50 puts sold to open for $2
2/8/23 Palo Alto (PANW) buyer 9000 March $200 calls $0.76 as 1K of the $170 adjust
2/8/23 C3.AI (AI) with 4700 Feb 24th $25 calls bought for $5.00
2/8/23 Google (GOOG) opening sale 4300 January $80 puts for $4.29
2/8/23 Amazon (AMZN) buyer 2500 September $105 calls for $10.43, sells 7500 of the June $150 calls
2/8/23 Tenable (TENB) with 1000 March $50 calls bought $1.30 aggressive, potential M&A target in cyber-security
2/8/23 Nvidia (NVDA) buyer 1000 July $190 puts up to $14.35
2/7/23 S&P 500 ETF (SPY) May $405 puts 8000X for $10M a popular buy today
2/7/23 Nasdaq 100 ETF (QQQ) large trade sold 25,000 Dec $260 puts to open $10.29 and also sold 25,000 of the $370 calls for $6.29
2/7/23 Nike (NKE) block of 5000 March $125 calls sold to open 4.05
2/7/23 Block (SQ) buyer 1000 Feb. 24th (W) $82 calls $6.05 to $6.10, earnings 2-23
2/7/23 Celsius Holdings (CELH) buyer of 1100 March 110/120 call spreads for $2.40
2/7/23 InMode (INMD) buyer 750 March $32.50 calls for $4.60 offer
2/7/23 Meta Platforms (META) opening sale 1700 April $185 puts $11.15 showing confidence
2/7/23 Meta Platforms (META) also seeing buyers of 4000 January $125 calls ITM for $30M
2/7/23 Google (GOOGL) big sweep buyer 3000 September $107.50 calls $10.05 to $10.15
2/7/23 Engage Smart (ESMT) unusual buys 4000 March $22.50 calls $0.50 to $0.70 as IV surge, earnings 2-9
2/7/23 Palo Alto (PANW) another large bull trade sells 7500 January 2025 $135 puts to open $15.30
2/7/23 Snowflake (SNOW) buyer 340 August $220 calls $9.40
2/7/23 Amazon (AMZN) large opening sale 5000 July $95 puts for $7.10
2/6/23 Oil & Gas ETF (XOP) buyers 2500 June $125 puts $8.50
2/6/23 Russell 2000 ETF (IWM) buyer 10,000 Feb. 24th (W) $191 puts $2.09
2/6/23 Target (TGT) with 1500 March 3rd (W) 180/200 call spreads bought
2/6/23 Chewy (CHWY) buyers active for 4000 March $50 puts $4.25 offer and higher, earnings late March
2/6/23 Marathon Oil (MRO) opening sale of 5750 April $29 calls at $0.80
2/6/23 American Express (AXP) buyer 2000 March $180 calls for $4.24 into dip
2/6/23 TG Therapeutics (TGTX) seeing buyers of 1300 August $17 calls at $5.50 to $5.70
2/6/23 Freeport McMoran (FCX) buyer 10,000 March $45 calls $1.38 as February $44 adjust
2/6/23 Microsoft (MSFT) early buys of 1300 August $265 calls for $19.15
2/6/23 Apple (AAPL) opening seller 1000 December 2025 $230 calls for $10.45
2/6/23 ON Semi (ON) seeing 900 May $65/$70 ITM call spreads bought for $4.00
2/6/23 Splunk (SPLK) ratio call spreads remain a popular strategy with March $110/$120 trading 1500X3000
2/6/23 Nvidia (NVDA) with 1000 April $210 puts bought $17.90 to $18.50
2/6/23 Oracle (ORCL) with 1250 April 80 calls bought $11.05 as Feb. 80 adjust
2/6/23 Tesla (TSLA) buyer 1000 Mar. 10th (W) $187.5 calls $20.3 to $21.35, also seeing 1000 of the $180 puts bought $10.10 to $10.20
Tesla March 10th expiration also captures the Investor Day in early March
Veeva Systems (VEEV) has seen some opening put sales to start 2023 of notable size such as 1250 June $150 and 1000 January 2024 $160 showing confidence in the recent lows holding while 2800 February $140 puts sold to open on 12/30.