SPY Rips After Inflation Report
We were watching to see if the inflation report would provide a dip and rip, or if it would be a fake move upward.
Well, the SPY dipped right into the 466.4 level on our watchlist, giving us the perfect opportunity for a nice long on the subsequent rip. You could have grabbed the 469 calls for as low as $0.25 and sold them for just shy of a buck. An easy 300% windfall!
We Don't Fall for a ROKU Fake
We were watching to see if Roku Inc (ROKU) would dip below our crucial 235 level. It briefly dipped below the level in the morning action, but we weren't fooled. We waited for our usual VWAP test just before the first hour and then went short.
You could have gotten the 235 puts for $1.50, risking 50%, and watched them go as high as $8.65 as of this righting. We could even see a few more points before the close.
Lots More Action Today ...
It was a big day, full of great trade opportunities. Here's a little more of what went down ...
- Tesla (TSLA) short on the 1010 retest. The 1000 puts for this week went from a low of $9 to a high of $23.
- Moderna (MRNA) gave us a great gap-down reversal opportunity. The 250 calls went from $2 at 10:30am to a high of $12. Great risk-reward profile — at 50%, you were only risking $1 per contract!
- Oracle (ORCL) popped right into the 105 level we discussed in the premarket prep, giving us a perfect five-point short into 100.
- Amazon (AMZN) broke at the 3480 level, per the range break plan. The 3480 puts selling for $22 and risking $18 went over $65.
What's next? We're seeing non-stop selling of Coupa Software (COUP). It could dip into 135 or even 130 next week.
Member Trade of the Day
Between a swing trade and some small TSLA scalps, Edumomo member Grapesoda ended the day up 5%. Way to follow the watchlist, exercise self-discipline, and make fewer, smarter trades!