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Market and Trade Analysis Summary

Jul 9, 2025

Summary

  • The meeting, led by Scott Henderson, covered comprehensive swing trade analysis for the week, including sector and stock-specific observations, trade reviews, and trade setup ideas.
  • Key points included mixed sector signals, a focus on new trade opportunities in names showing relative strength or potential for upside, and a more conservative long-term swing approach due to fewer strong short-term setups.
  • Attendees were reminded to align trade sizes with personal risk models and await further trade details posted in chat.
  • No major decisions affecting trade strategy were made; the session focused on technical setups, potential trades, and ongoing market analysis.

Action Items

  • This week – Scott: Complete mapping and post detailed trade plan for AVGO in chat.
  • This week – Scott: Monitor and potentially add to Unity position between current strikes; assess boxed-in position for further action.
  • Ongoing – Scott: Monitor sector and flow information for new emerging opportunities.
  • This week – Scott: Spend time reviewing upcoming earnings, especially for pre-bank cycle candidates.

Market & Sector Overview

  • Overall market breadth is positive but not as strong as expected at all-time highs, with notable rotation in non-tech sectors (industrials, energy, real estate).
  • Financial sector strength seen as potentially misleading due to underlying concerns in retail office delinquencies and defaults.
  • M2 money supply at all-time high, yet crypto remains flat, which is unusual and flagged for future monitoring.
  • Sector flows strongest in information technology, financials, and industrials; consumer staples also showing recent strength.
  • Earnings season is in the pre-bank stage with no immediate high-conviction opportunities due to lack of significant expected moves.

Trade Review and Current Positions

  • Closed most cash-secured puts in Google, with consideration to reopening positions based on new AI approval news.
  • Covered calls sold on Grab for revenue; overall unrealized P&L at $1,669.
  • Existing positions in KRE and QQQ considered inactive; consideration for adding to Unity and maintaining VIX $50 cash-secured puts despite being slightly underwater.
  • Insiders are active in Nvidita, AMD, and Mastercard; notable sector flows into Oracle and AVGO.
  • Additional trade setups and mappings to be posted in chat as completed.

Trade Setups & Technical Observations

  • Apple: Strong flows across investor types; upside target mapped near $238. Cash-secured puts at $210 (July or September) or call spreads considered for aggressive play.
  • Duolingo: Prefer long-term swing with entry near $371; consider cash-secured puts at $355 or call spreads (e.g., $370 by $480) if price retraces.
  • MD: Broken out of base, targeting $9 upside; calls or call spreads considered for 8-12 week horizons.
  • MRNA: Technicals suggest potential bullish trend change; September $25 cash-secured puts or $35 calls for 8-16 weeks out recommended. Limited premium at low strikes; deep out-of-the-money strategies carry risk in strong rallies.
  • Oscar Health (OSCR): Positive technical structure with large block option activity at $25-30. Consider $15 cash-secured puts (July/August) or 8-16 week calls. More aggressive: $17.50 by $27 call spread.
  • TEAM: Potential bottoming structure; September $200 cash-secured puts suggested for larger portfolios, with caution on position size due to capital requirements. Watch for AI-related risk to business fundamentals.
  • CELELY: Industrial sector trade idea; targets $70, risking $58. Prefer $60 cash-secured puts (July/September) or $65 by $110 call spreads. Conservative approach recommended due to lack of FOMO in industrials.

Decisions

  • No major changes to swing trading approach — Maintained more conservative, longer-term swing setups due to fewer immediate high-conviction trade opportunities.
  • Monitor AVGO for possible new position — Pending completion of technical mapping and detailed plan.

Open Questions / Follow-Ups

  • Awaiting further analysis and trade details for AVGO from Scott.
  • Need to monitor if the divergence between M2 money supply and crypto performance resolves or persists.
  • Assessment needed for potential bank earnings trades in upcoming cycle after further review.