We saw some nice range in the early morning. SPY looked ugly at first but held our 426 level in the premarket, only to claw its way back to 433 at open. This was a great risk/reward opportunity to get short.
We thought it would go lower, but it ended up giving us a double bottom on the small timeframes and a higher low vs. 426 for a chance to get long. The 430 puts went from $1.75-$2.00 and went as high as $4 at the double bottom.
Short, Then Long on TSLA
Tesla (TSLA) showed weakness in the morning, only to recover in spectacular fashion very close to our 790 watchlist level. The opening flush from 830 gave us the opportunity to buy 800 puts for $5-$6 and sell them for a high of $20 at the bottom. If you then flipped long, you could have gotten the 820 calls for $8-$10 and seen them shoot up just shy of $40.
NVIDIA Corp (NVDA) popped back on the watchlist today as it retraced its entire monster rally. Maybe it will see some upside ... it had decent range today. If you got long on the afternoon dip into our 215 watchlist level, you could have scored a nice YOLO of 220 calls for $0.35. Those things went to $8 at the close, right at our 227.5 target! It's fun being right.
AAPL Gaps Up After ER
Apple (AAPL) did not disappoint with last night's earnings report. Even though it didn't offer guidance, Wall Street didn't seem to mind. It offered a small gap up with some profit taking right into our 162.5 watchlist level. If you grabbed next week's 170 calls at the dip, you could have gotten them for $1.20 and sold them for $3.30 at the end of the day ... and you can carry some of them into next week!
Member Trade of the Day
Edumomo member Scooz ran the table with trades on Amazon (AMZN), AAPL, TSLA, and SPY to close the day 17% up. Not too shabby, Scooz!