All the action was in the morning today. That's why we love being two-hour traders — we clock out early and don't have to sit through boring consolidation all day long.
SPY gapped up a little bit and immediately sold ... right into our 447.5 watchlist level, giving us an opportunity to get long. The 450 calls went from $2 to $3 at the 450 watchlist level.
SPY finally broke 451 near the end of the day and we were there to grab the long. The 450 calls went from $2.70 to $4.40 right at the 453.5 watchlist level.
Right now our eyes are on the market to see if we break to the upside or the downside on SPY after this consolidation. Some earnings reports are coming tonight; that may help steer the direction. We're ready either way.
Eyes On AMZN
Amazon (AMZN) looks ready to explode. We were looking for dips and grabbing 3000 calls for $55-$60 off the 2950 watchlist level. They went to a high of $75 — not our usual gains, but not bad for a choppy day. Later in the day during the rally they hit $92.
UPS Dips and Rips
UPS had a monster gap up and gave us a dip into the 226 watchlist level, followed by a nice four-plus-point move into 230 and above. Everyone must have really enjoyed the 50% dividend increase.
HD Hiring News Fizzles Out
Home Depot (HD) made our list after they announced plans to hire 100,000 associates. Hopefully we'll see more revenue growth, but the price action ended up being a bust to the upside. Luckily, we can play the downside. You could have grabbed 365 puts on the 369 watchlist level break. They went from $2.50-$3.00 to a high of $5 before finding a bottom.
TSLA Revs Up
Tesla (TSLA) won our hearts today with some nice range. It dipped just past our 910 watchlist level and reclaimed, allowing us a nice opportunity to get long. The 920 calls were a steal at $23 and topped out just before TSLA rejected at our 945 level. Damn, that watchlist is good.
NFLX Simmers Up
Netflix (NFLX) cleared our 432 watchlist level, and then it was a nice slow grind all the way up to 450, squeezing the shorts all the way. The 450 calls went from $3.00-$3.50 to a high of $9.
Member Trade of the Day
Edumomo member SpicyEyes only traded UPS, but rode it to a 5.5% gain. Nice work!