Big Pop After FOMC
Today was our long-awaited big FED day. We saw significant upside early on in the wake of the FOMC meeting in the afternoon, with the SPY surging a solid four points. Now we're waiting to see if it has follow-through.
Overall, I don't trust it. Based on the commentary, I think we could see more downside in the coming days. It's "wait-and-see" o'clock now. We have flipped our bearish bias on Tesla (TSLA) and Amazon (AMZN), though, and have our eyes on long positions for the coming days.
Big Short on ROKU Bad News
Roku (ROKU) had bad news premarket, right as it was sitting at one of our critical levels. We waited for the initial pop into our 215 watchlist level, then got short. We then took profits at our targets and waited for a reload at VWAP. Then we sat on them as it fell into our 188 watchlist level.
The result — the 200 puts went from $4 all the way to $13.70 at the bottom. More than 4x upside, plus a ton of great teamwork on this one from the Edumomo family!
If ROKU stays below 203, 180 could be coming. We have our eyes on the 190 puts for the coming days.
Quick Short on Weak TSLA
TSLA continued to look weak. We were hoping to see the gap fill all the way to 900, but it found some support between our levels. It rejected the 965 watchlist level, making several higher lows before we jumped in short, adding to our position at the VWAP break. The 940 puts doubled in value from $12 to $24. Love it.
Member Trade of the Day
Edumomo member Benassi — one of the first students in our Two-Hour Trading 12-Week Accelerator Course — absolutely killed it on a Moderna (MRNA) trade by making an excellent plan and sticking to it — long at the 272 watchlist level and taking it all the way to the next target of 285 ... only moments before bad vaccine news put MRNA in sell mode. Way to go, Benassi!