All-Star Options Jam Session - July 3, 2024

Jul 7, 2024

All-Star Options Jam Session - July 3, 2024

Overview

  • Special session due to holiday week.
  • Half-day trading today, full closure tomorrow, full day on Friday.
  • Host is going on a vacation to Las Vegas, no trading on Friday.
  • General market overview and review of open positions, trades, and stops.
  • Educational purposes only disclaimer.

Market Review

S&P 500 (SPY)

  • Knocking on the door of new all-time highs.
  • Brief consolidation, but a potential breakout is imminent.

NASDAQ (QQQ)

  • Already at fresh highs.
  • Indicative of a confirmed bull market at the index level.
  • Large-cap names driving the market.

Individual Stocks

  • Midcaps and small caps not participating as fervently.
  • Ability to play big names like Microsoft, Amazon, Apple.
  • Preference for bullish trades due to confirmed bull market.
  • Holding some bearish trades for portfolio hedges.

Position Reviews

Closed Positions

DR Horton (DHI)

  • Trade did not work, exited quickly to limit losses.
  • Hit stop-loss level, ended trade with a loss of ~$6.

Rocket Companies (RKT)

  • Initial promising signs, but hit stop-loss level and exited.
  • Trade managed with a lower loss than potential max loss.

Updated Stops

Anol (ANO)

  • Long July 60 calls from late February.
  • Sold half at 65, locking in significant gains.
  • Current stop at 66.50, trailing aggressively as expiration approaches.

Analog Devices (ADI)

  • Long December 240 calls from May.
  • Sold half at 14, free-riding now.
  • Current stop at 220, will adjust as needed.

Bank of America (BAC)

  • Long December 45 calls.
  • Breakout observed, feeling optimistic.
  • New stop at 39.

eBay (EBAY)

  • Long October 55/65 bull call spread.
  • Trade isn’t moving favorably; updated stop at 52.

Google (GOOGL)

  • Protected risk reversal trade.
  • Aiming for 190 as a profit-taking point.
  • Potential for capped upside at 190.

New Trades

Five Below (FIVE)

  • New bearish trade due to an ugly chart.

Reddit (REDDIT)

  • New bullish trade, fresh highs post-IPO.
  • High short interest, potential for a strong move.

Morgan Stanley (MS)

  • New bullish trade, breaking out of a 25-year base.

Conclusion

  • Slide summarizing all updated stops.
  • Mention of Trendspider collaboration and promo code.
  • Fourth of July holiday, no video next week.

[Music]

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