Topics covered:
1) 0:00 Announcements
2) 1:00 Market Commentary and Index Review (Nasdaq Composite, S&P 500, and Russell 2000)
3) 8:10 FOCUS LIST: NVDA, MSFT, NOW, UBER, LLY, NVO, WING, PANW, CRWD
4) 11:00 Stock Review – Software: IGV (ETF), CDNS, ADBE, CRM, WDAY, ESTC, ZS
5) 14:05 Stock Review – Semiconductors: SMH (ETF), AVGO, LRCX, KLAC, AMD, MRVL, ARM
6) 16:20 Stock Review – Biotech/Medical Products: XBI (ETF), ACAD, MGNX, VKTX, MRUS, AXSM, ISRG, RXST, PRCT
7) 18:10 Stock Review – Watch List/General Ideas/Commentary: SNAP, META, NFLX, VRTX, SMCI, VRT, CLS, FN, PSTG, NTAP
8) 23:30 Conclusion/Summary
Market Summary:
Here are the concepts I’ve discussed in many recent videos: 1) I am bullish over the next 6-12 months because of all the technical strength we saw from November through January. Why did the institutions aggressively get back into the market during that time? My guess is the new bull market powered by AI, the anticipation of the Fed lowering rates this year, and/or something bigger that we won’t comprehend until later. My point is “who cares” just focus on the technical strength and stop worrying about the “why?” 2) Does that mean we will go straight up with no pullbacks? Of course not! That’s why I’ve also discussed the theme of “using the 21-day EMA as your guide.” 3) Stay focused on the best growth stocks/ETFs out there. 4) Get strong entry points and manage your trades based on your timeframe and overall investment plan. If you don’t have a plan, please continue to finetune it and work on one that fits your situation. 5) Manage risk and stick to your stops. Just because it’s a bull market doesn’t mean everything is going to work out.
Currently, the Nasdaq Composite is 2.8% extended from its 21-day. When it gets to around 3-4% extended is when you run into a higher probability of a pullback. Of course, it can pullback before that, or go sideways and correct through time. The main point is stay disciplined and don’t chase positions when the market is extended. Thank you and good luck for the remainder of the week.
Unusual Option Activity:
2/7/24 Nasdaq 100 ETF (QQQ) buyers of 3250 Feb 23rd $436 calls at $3.39 as Feb 16th $430 calls adjust
2/7/24 Nasdaq 100 ETF (QQQ) massive buyer of 15,000 June $465 calls at $7.54 as the $350 calls adjust
2/7/24 Brazil ETF (EWZ) with 10,000 April $33 calls sell to open at $1.75 bids
2/7/24 Costco (COST) buyer 1000 January 2025 $945 calls $8 to $8.10
2/7/24 Uber (UBER) 7000 March 62.5 puts sell to open 0.80
2/7/24 Uber (UBER) buyer of 35,000 March $75 calls $1.62 adjusts February $70 calls
2/7/24 Shopify (SHOP) June 2025 $115 calls sold to open 1900X for 11.80
2/7/24 Occidental (OXY) bull flow continuing with opening sales of 5000 March 8th $57 puts at $1.47 bids
2/7/24 Chevron (CVX) opening sale 10,000 April 165 calls 1.32
2/7/24 Baker Hughes (BKR) 1500 January 2026 $23 puts sell to open $2
2/7/24 SpringWorks Therapeutics (SWTX) opening sale of 2000 March $55 calls at $3
2/7/24 Crispr Therapeutics (CRSP) 3100 March $65 puts sell to open $4.20
2/7/24 Eli Lilly (LLY) 400 May $740 calls sold to open
2/7/24 Eli Lilly (LLY) also with 270 Jan $750 calls sell to open $84.25 as some Sept $710 short calls adjust up
2/7/24 Otis Worldwide (OTIS) buyer of 1200 June $90 calls at $5.65 as March $87.50 calls adjust big wins
2/7/24 Broadcom (AVGO) large buyers of 1150 March $1300 calls at $31.60 to $35.20, over $4M
2/7/24 Microsoft (MSFT) buyer 40,000 May $380 calls as March $350 adjust, mega cap bull adjusting today
2/7/24 Nvidia (NVDA) buyer 1950 March 1st (W) $710 calls $33.50 as Feb adjust
2/7/24 Nvidia (NVDA) 3000 March 1st (W) $720 calls bought $31.25 with Feb calls adjusting
2/7/24 Crowdstrike (CRWD) buyer of 350 Jan $350 calls at $46 as the $290 calls adjust
2/7/24 Super Micro (SMCI) seeing 250 April $860/$870 call spreads buy
2/7/24 Meta (META) buyer 38,000 June 2026 $950 calls $16.48 as the June 2025 $600 calls close 19,000X
2/7/24 Meta (META) 5500 Jan 2026 $700 calls buy $34.35 offer as Jan 2025 $550 adjust out and up
2/7/24 Meta (META) buyer 900 August $400 ITM calls for $9M
2/7/24 Arm Holdings (ARM) buyer of 2000 April $75 calls into earnings 8.20 to 8.25 also a seller of 1000 April 72.50 puts
2/7/24 Palo Alto (PANW) buyer of 1000 March 1st $365 calls at $18.80, earnings 2/20
2/7/24 DataDog (DDOG) into earnings 2-13 an opening sale 500 March $145 ITM puts for 18.15
2/7/24 Deckers (DECK) 735 April $860/$770 bull risk reversals opening late
2/6/24 Russell 2000 ETF (IWM) buyer of 4000 Feb 23rd $198 calls at $1.90 as Feb 16th $190 calls adjust
2/6/24 Gold ETF (GLD) 3000 November $198 calls sold to open 7.45
2/6/24 Lululemon (LULU) large buyers of 2000 March 22nd $465 calls at $13.10 and also buys 1500 of the $480 calls at $8.04
2/6/24 Spotify (SPOT) with 1000 April $250 calls bought 12.90 to 14.50
2/6/24 Netflix (NFLX) sale to open 700 March 22nd (W) $515 puts for 5.81
2/6/24 Shopify (SHOP) large opening seller of 1600 January 2026 $55 puts at $7.20, reports 2/13
2/6/24 Occidental (OXY) size opening sale 5000 Dec $57.50 puts 4.95
2/6/24 Occidental (OXY) also nearly 2000 Dec $60 puts selling to open 5.77 to 5.74
2/6/24 Chevron (CVX) 1650 July $135 puts sold to open 2.75
2/6/24 Devon Energy (DVN) opening sales of 1900 July $42.50 calls at $3.00 to $2.96
2/6/24 JP Morgan (JPM) opening sale 1025 June 2025 $150 puts for 7.01
2/6/24 Eli Lilly (LLY) buyer of 800 May $690 calls at $51.25 to $54.40
2/6/24 Pfizer (PFE) size buys 6000 March $26 calls $2.05 to $2.12
2/6/24 Applied Materials (AMAT) with 10,900 March $155 puts sell to open for $2.28 to buy the $175/$195 call spreads for $4.83, earnings next week
2/6/24 Nvidia (NVDA) buyers of 2900 March $710 calls at $37.60, adjusting some $650 calls
2/6/24 Nvidia (NVDA) size buys 3000 May $860 calls for $6M
2/6/24 Lam Research (LRCX) with 500 April $850 calls bought for $2.55M spreading with $870 calls
2/6/24 GoDaddy (GDDY) buyer 1340 March 8th (W) $120/$130 call spreads, been an activist play, reports 2-13
2/6/24 Broadcom (AVGO) buyer 500 March 1st (W) $1290 calls for $23
2/6/24 Google (GOOGL) 11,000 January 2026 $260 calls bought 2.60 to 2.90
2/6/24 Meta (META) buyer of 2000 April $455/$505 call spreads, also 3000 March 8th (W) $460 puts sold to open
2/5/24 Nasdaq 100 ETF (QQQ) 2500 July $475 calls bought, massive opening sale 12,850 Sept $435 puts for $22.91
2/5/24 McDonald’s (MCD) March $290 calls bought 1950X $4.35 to $4.40
2/5/24 Costco (COST) opening sale of 1000 April $680 puts at $13.12 as the $630 short puts adjust big wins
2/5/24 Disney (DIS) with 7500 April $105/$90 bull risk reversals trading
2/5/24 Uber (UBER) June 75 calls up to 10,000X sold to open
2/5/24 Citigroup (C) 2900 Feb. 23rd (W) $54 calls bought $1.95 offers
2/5/24 Merck (MRK) large seller of 11,260 April $135 calls at $1.24 as the $130 short calls adjust
2/5/24 Eli Lilly (LLY) buyer 500 April $850 calls $5.20
2/5/24 Eli Lilly (LLY) also 200 January 2025 $700 puts sell to open $65.70
2/5/24 Eli Lilly (LLY) 100 January 2026 $800 puts sell to open 146.50
2/5/24 Meta (META) 1000 June $465 puts sold to open for 35.19
2/5/24 Super Micro (SMCI) 240 Jan 2026 $800 calls bought $180
2/5/24 Super Micro (SMCI) buyers March 1st (W) $630 calls 500X at $50.20 and 250 April $650 calls bought
2/5/24 Salesforce (CRM) seller to open 500 Jan 2026 $250 puts $26
2/5/24 Salesforce (CRM) 1000 Jan 2025 $300 puts sell to open $36.80 ITM
2/5/24 Marvell Tech (MRVL) large buyer of 5000 April $75 calls at $2.62 as $80 calls adjust
2/5/24 Apple (AAPL) massive opening seller of 5400 August $185 puts at $8.75 down to $8.65
2/5/24 Fortinet (FTNT) opening sale 400 Sept 75 puts for 12.70
2/5/24 Advanced Micro (AMD) with 2350 Feb. 23rd (W) $172.50 calls bought 7.79 to 8.38