Topics covered:
1) 0:00 Announcements
2) 0:30 Market Commentary and Index Review (Nasdaq Composite, S&P 500, and Russell 2000)
3) 10:20 Stock Review – Biotech: XBI (ETF), IBB (ETF), BTAI, VTYX, RVNC, ACLX, AMLX, AXSM, VRDN, PCVX
4) 16:00 Stock Review – Semiconductors: SMH (ETF), NVDA, ACLS, ALGM, CRUS, AEHR, PI, KLAC, LSCC
5) 19:50 Stock Review – Software: AYX, AI, SPLK, ESTC, OSPN, MODN
6) 22:40 Stock Review – Watch List/General Ideas/Commentary: URI, VAL, TDW, SLB, TMDX, INSP, AXON, MEOH, WING
7) 25:20 Stocks near buyable ranges: VRNA, IMCR
8) 27:05 Conclusion/Summary

Market Summary:
In last weekend’s video, I mentioned to expect some weakness coming into this past week mainly because the major indexes were extended. We got the expected pullback last week and now the big question is: Should we expect a bounce from here? Or should we expect further weakness? Of course, no one knows the answer to this, but in this video I review the positives and the negatives and remind members to keep an open mind. The biggest positive is that there’s very little distribution. We had our first distribution day in a long time this past Thursday (February 9th), but overall, we’re not seeing aggressive selling from the big institutions. The biggest negative is the recent bullish sentiment. As market conditions improve, it’s human nature for market participants to get more bullish and more invested. In other words, this week’s pullback makes sense when you combine and extended market with one that needed to shake out some of the recent excessive bullishness.

That is why I constant remind members to reduce emotions and stay calm. Although this week’s NAAIM survey showed investment levels above 85%, I remained at approximately 50% invested because I didn’t want to be too reactive and chase positions. As I’ve mentioned a million times, entry point is very important and the last thing I want members to do is get more invested into an extended market. As for this upcoming week, I think the CPI (inflation) report on Tuesday pre-market will determine the market’s next move. I am leaning more optimistic because of all the institutional buying earlier this year. In other words, I could see some volatility around the report, but it’s tough to see the market fall apart from here because of all the previous strength. I remain 50% invested and will increase exposure if the market finds support around its 21-day, and will reduce exposure if the institutional selling picks up. Again, do your best to stay flexible and open-minded. As always, your exposure levels should be based on your overall plan and investment objectives. Thank you and enjoy the remainder of your weekend!

Unusual Option Activity:
2/10/23 Semiconductor ETF (SMH) with over 18,000 May $205 puts being bought this morning for $8.5M
2/10/23 Tesla (TSLA) early day buyer of 5000 April $190 puts for $17.50
2/10/23 Tesla (TSLA) also a large buyer of 6100 January 2025 $185 calls at $73.20, adjusting the Jan 2024 $153.33 calls
2/10/23 Lyft (LYFT) into the gap down seeing buyers of 10,000 July $12.50 calls at $1.40 sweep offers
2/10/23 Lyft (LYFT) also buyers 5000 June $12.50 calls up to $1.25 and 10,000 April $10 calls bought $1.61 to $1.65
2/10/23 Disney (DIS) seeing large dip buyers today in January 2025 $75 deep ITM calls bought at $44.50
2/10/23 Occidental (OXY) with 1600 May 72.5 calls bought $2.89 offer
2/10/23 Schlumberger (SLB) buyer of 4900 May $62.50 calls for $2.08
2/10/23 Zillow (Z) large buy for 1850 Jan 2025 $40/$65 call spreads at $8.40, over $1.5M bet on higher prices long term
2/10/23 Dexcom (DXCM) seeing opening sales of 500 June $115 puts for $8.50
2/10/23 Google (GOOG) buyer of another 2250 September 107.5/117.5 call spreads
2/10/23 Snowflake (SNOW) opening sale 400 April 125 puts for $5
2/10/23 Micron (MU) seeing 900 Feb 24th $60 calls bought for $1.74
2/9/23 Biotech ETF (XBI) buyer 10,000 June $78 puts for $2.90
2/9/23 Biotech ETF (IBB) with 5500 June $120 puts opening $2.39 as March 119 adjust
2/9/23 Russell 2000 ETF (IWM) buyers of 20,000 March 2024 $230/$160 bullish risk reversals at small net credits of $0.28
2/9/23 Russell 2000 ETF (IWM) also with 2750 May 195 puts sold to open 9.20
2/9/23 Target (TGT) seeing a buyer of 1000 March 3rd $175/$180 call spreads at $1.93, captures earnings
2/9/23 Dominos (DPZ) opening sale 400 June $410 calls 10.30
2/9/23 Block (SQ) buyer 1000 Feb. 24th (W) $80 calls $5.50 for 2-23 earnings
2/9/23 Union Pacific (UNP) opening sale of 2000 March $190 puts at $2.20
2/9/23 Google (GOOG) buyer 3500 September $107.5/$117.5 call spreads for $2.94
2/9/23 Google (GOOGL) with 23,500 July $120 calls sold to open for $2.00
2/9/23 Palo Alto (PANW) more size put sales with 25090 January $150 at $12.15 bids
2/9/23 Palo Alto (PANW) also 900 Jan. 2025 $100 puts sold to open 5.45
2/9/23 Amazon (AMZN) with 7000 July $100 puts bought $9.65 offers
2/9/23 Microchip (MCHP) buyer 600 January $110 calls $4.50 offer
2/9/23 ON Semi (ON) large buyer of 4000 April $75 puts for $2.65
2/9/23 Alteryx (AYX) bull flow into earnings with 700 ITM June $60 puts sold to open 7.30, name with a lot of bull OI already