Compound and Friends Podcast: https://www.youtube.com/watch?v=DbVPNpzgplM

Topics covered:
1) 0:00 Announcements
2) 0:15 Market Commentary and Index Review (Nasdaq Composite, S&P 500, and Russell 2000)
3) 9:10 Stock Review – Biotech: XBI (ETF), RVNC, SRPT, SGEN
4) 11:20 Stock Review – Semiconductors: SMH (ETF), NVDA, AMD, ACLS, ALGM, LSCC, PI, AEHR, CRUS
5) 15:15 Stock Review – Software: AYX, OSPN, AI, TENB, PANW, CDNS, DUOL
6) 18:10 Stock Review – Watch List/General Ideas/Commentary: SGML, WING, TXRH, URI, SLB, ANET, TMDX, LNTH, PERI, FOUR, DKS, AXON
7) 22:20 Conclusion/Summary

Market Summary:
Last week, two negative events (Fed Chair Powell’s hawkish testimony and the problems with Silicon Valley Bank) led to heavy selling in the major indexes. I reduced exposure because many stocks and ETFs broke below their key moving averages. My conclusion is the same from the Weekend Video (3/11/23). Stay defensive, keep some cash, and use lighter positions until market conditions improve. The reason for lighter positions is that I’m expecting higher than normal volatility over the next few weeks. Between options expiration, next week’s Fed meeting, and end-of-the-quarter rebalancing, lighter positions can help you from getting chopped up in this market. In addition, volatility tends to increase when we are below the 200-day moving average.

As always, I will remain open-minded. There are still growth stocks acting well and I review many of them in this video. Also, from a contrarian point of view, sentiment is becoming increasingly negative as many are concerned about further banking system problems. Of course, this is a legitimate concern and negative headlines (such as the one we got this morning from Credit Suisse) can also lead to higher volatility. Again, if you want to trade, please keep things light. I will specifically be looking for the selling to calm down, for the indexes to regain those key averages, and for better overall clarity before I increase my exposure. I am currently 15% invested and maintaining a watch list of some of the stronger relative strength stocks. Thank you and good luck for the remainder of the week.

Unusual Option Activity:
3/15/23 Russell 2000 ETF (IWM) seeing buyers 5500 April $173 calls into weakness for $3.5M
3/15/23 Russell 2000 ETF (IWM) also an opening seller of 7500 April $175 calls for $5.24
3/15/23 Uranium ETF (URA) with 30,000 April $19 puts bought $1.10 to $1.25
3/15/23 Consumer Discretionary ETF (XLY) block of 10,000 April $130 puts bought $2.39
3/15/23 Regional Banks ETF (KRE) buyer 10,000 May $40 puts at $3.08, adjusts the April $43 puts lower
3/15/23 S&P 500 ETF (SPY) seeing 4500 ITM April 6th (W) $375 calls open this morning for $7.5M
3/15/23 Las Vegas Sands (LVS) sweep buys for 2800 April $50 puts at $1.42
3/15/23 Royal Caribbean (RCL) seeing 2200 January $57.50 puts bought for $9.10
3/15/23 Devon Energy (DVN) with 1531 November $55 calls sold to open $2.31, adjusting $60 calls
3/15/23 Schlumberger (SLB) buyer of 2500 April $45 puts at $2.05, adjusting some $50 puts lower
3/15/23 Apache (APA) opening sale 3000 April $30 puts 1.18
3/15/23 Citigroup (C) with a buyer of 2300 April $45 calls at $2.75
3/15/23 United Rentals (URI) with 1275 April $350 puts bought for $7.50
3/15/23 Bunge (BG) more bull flow with 1900 July $110 calls bought $3.50 to $3.70
3/15/23 Apple (AAPL) with 15,000 next week $148 puts selling to open near $2
3/15/23 Nvidia (NVDA) with 1800 September $230 puts selling to open 29.05 to 28.80
3/15/23 Duolingo (DUOL) buyers of 500 August $185 calls for $3.20 offers
3/14/23 S&P 500 ETF (SPY) buyers of 45,000 April $372 puts for $4.56, adjusting the $367 puts as ongoing hedge
3/14/23 Russell 2000 ETF (IWM) with 10,000 March 24th next week $176 puts sold to open at $3.06, adjusts March 17th
3/14/23 Utilities ETF (XLU) buyer 2500 January $68 calls $4.15 offer
3/14/23 Nike (NKE) with 1700 September $140 calls sold to open for $4.15
3/14/23 Ford (F) with 1600 December $12 puts sold to open $1.54
3/14/23 World Wrestling (WWE) 8000 May $85/$95 call spreads buy as April spreads adjust, M&A talk recently
3/14/23 Netflix (NFLX) with 1150 September $195 puts sold to open $5.55 to $5.45
3/14/23 Dutch Brothers (BROS) unusual buy of 1000 March 31st (W) ITM $25 calls for $6.10
3/14/23 Wells Fargo (WFC) large trade sells to open 20,000 May $45 calls at $0.69 to $0.70
3/14/23 Barclays (BCS) opening seller 1550 January 2025 $7 puts for $1
3/14/23 Goldman Sachs (GS) buyer 300 June 2024 $320 puts for $37
3/14/23 PayPal (PYPL) opening sale 350 October 72.50 puts for 7.95
3/14/23 Johnson and Johnson (JNJ) buyers 1450 May $155 calls $4.55 offer
3/14/23 Caterpillar (CAT) opening seller 800 April $230 calls $7
3/14/23 Deere (DE) large buy 550 January $440 calls for $30.15
3/14/23 Albemarle (ALB) aggressive buys of 1000 June $270 calls for $8.20 to $8.40 and has 7K June $240 short puts in OI
3/14/23 Palo Alto (PANW) seller 3K Jan 150 puts for 8.10 which will look to add to short put OI
3/14/23 Palo Alto (PANW) also buyer of 1500 April 185/200 call spreads
3/14/23 Super Micro (SMCI) with 3400 May $120 calls bought $2.95 to $3.20
3/13/23 Nasdaq 100 ETF (QQQ) opening seller 4000 July $275 puts for $10.50
3/13/23 High Yield ETF (HYG) buyer 5250 August 71/65 put spreads
3/13/23 Gold ETF (GLD) massive buyer of 49,500 May $185/$200 call spreads this morning
3/13/23 Tesla (TSLA) with 2000 March 2024 $220 calls sold to open 25.65 to 25.35
3/13/23 Nike (NKE) opening seller 800 October $110 puts for 8.18
3/13/23 Exxon (XOM) with 1100 June 2025 100 puts selling to open 13.80 to 13.50
3/13/23 Devon Energy (DVN) with another 3350 August $45 puts being bought $3.60 to $3.70
3/13/23 Goldman Sachs (GS) large opening seller 7000 April $350 calls down to $4.61
3/13/23 Bank of America (BAC) buyers of 10,000 April $30 calls at $1.45
3/13/23 Johnson and Johnson (JNJ) bull flow again with 1100 May $150 calls bought early $8.50
3/13/23 Illumina (ILMN) with 1465 June $270 calls bought $8.40 to $9.10 with the Icahn news
3/13/23 Illumina (ILMN) also seeing 800 Sept $260/$320 call spreads bought here for $14.40
3/13/23 Albemarle (ALB) opening seller of 430 Jan 2025 $240 puts at $54.80, adjusting the Jan 2024 short puts
3/13/23 Nvidia (NVDA) size buyers 3400 July $205 puts around $16.75
3/13/23 Snowflake (SNOW) seeing buyers of 1700 April $140 calls at $10.85, adjusting the $135 calls