We woke up to a small gap-up after Friday's last-minute selloff, and the market opened pretty much in the same place ... indecision for the first hour or two, with wild swings in each direction. This is where planning is crucial — so you don't flip-flop with your ideas!
Our plan to get short as long as SPY didn't reclaim 452, turned out to be a good one. You could have grabbed the 450 puts on the pop into 451 for $1.20 or so, then sold them close to the 446.5 watchlist level for $3.50.
FB Trends Down
Meta (FB) had a nice trend ... down. It opened right above one of our watchlist levels, but quickly lost it. Then it lost the lows from the first day of the selloff, sending it back into sell mode. If you grabbed the 225 puts after the initial level break, you could have snagged them for $2.50 and sold them for a high of $7 at our 223 watchlist level!
TSLA and AMZN Drive Up
Tesla (TSLA) and Amazon (AMZN) both offered solid opening range drives. AMZN opened right where it closed Friday. If you grabbed the 3200 calls, risking vs. a break of Friday's close, those went from $36 to $89 in less than an hour!
TSLA did almost the same thing, except it offered a little dip first. We grabbed it long on the 930 reclaim, taking the 950 calls. They made a quick move from $20 to $29 before rejecting our 945 watchlist level.
PTON Sells in the Wake of Acquisition News
Peloton (PTON) gapped up huge after hours on Friday in the wake of the news of its acquisition by Amazon. The market did pretty much what we expected and sold the news.
Once it retested our 31.8 watchlist level after the initial break and short, you could have grabbed the 30 puts for $2. They went to $4, but we preferred to take common shares because the prices were so small. You could easily take 1,000 short, risking for a reclaim of the 31.8 watchlist level, and we stood to make a quick $4,000 against $1,000 of risk. Fantastic!
Member Trade of the Day
Edumomo member SpicyEyes took PayPal (PYPL) puts on the break of VWAP for an all-day grinder to a portfolio increase of 4.65%. Way to persevere!