NVAX Rumors Open the Door for a Monster Long Play

Sometimes you just have to love the rumor mill. Novovax (NVAX) plunged overnight in the wake of whispers in the news about production and quality control issues. Well, lo and behold, first thing in the morning Novovax put out a statement rebuking the report and denying any such issues. Oops—time to correct for that goofy overnight drop. In other words, time to pounce and go long.

Sure enough, after bottoming out at 121, NVAX bounced back up to 146. We bought 135 calls for $5 near the open and watched them rocket up to $14—a near triple in value. If you wanted to buy the stock instead, you could have bought 500 shares, risking only $1,000, and ended the day $10,000 richer.

COIN Gets an Assist from its Friend Bitcoin

As bitcoin rips toward all-time highs, I put Coinbase (COIN) on the watchlist, looking for dips. If it dips, go long—there’s no way COIN won’t run with bitcoin on a tear like this.

Sure enough, COIN dipped down to 306, right into one of my levels. When our community sees a stock dip down to one of my specified levels, they know it’s time to go long.

Sure enough, COIN is already back up over 310 and approached 320 target. We bought next week’s 320 calls at the open for $7.50. They’re already worth 11, but we’re sitting tight to see it go to 320 or 330, buoyed by the rise of everyone’s favorite cryptocurrency.

NFLX Earnings Announcement Leads to an After-Hour Rip

We’ve been waiting for Netflix to announce its earnings. When they did so late yesterday, NFLX ripped up to 660s. But their guidance was weak and it couldn’t hold, dipping back down to 622. We’re looking for it to consolidate a little before it picks a direction, up or down. If the market stays strong, look for NFLX to clear 650 in the next couple of weeks.

The Market Remains a Beast

Despite some chop, the market continues to boom. We were expecting a flush-out. Well, it flushed mid day as far as wait for it…. just the open, and then came right back up. We’re watching for the SPY to go to 460, before year end

We’ve been talking about Tesla (TSLA) a lot this week. Well, we’re seeing tight consolidation today in advance of tonight’s earnings statement. Pins and needles … stay tuned!

Student Trade of the Day

Bennyshee took advantage of that NFLX dip, buying this week’s 640 calls for $3.15 off the VWAP, like we teach here. Exiting the trade at $4.70, Bennyshee enjoyed a tidy 3% boost in total account value. Nice work, Bennyshee!