Happy February options expiration day!

It was tough for the broad markets to gain any footing on a shortened week as markets were closed on Monday.

A developing trend has emerged in the last several Fridays.

We've seen markets peel back gains from early in the week.

This pattern of taking risk-off ahead of the weekend is done to avoid any big news coming out as the coronavirus continues to spread.

This uncertainty has pushed the fear gauge for the S&P 500, known as the CBOE Market Volatility Index (VIX), at 17, which is below our key level of 15.

Market bulls still have the wind to their back as central banks continue to print money.

It's likely today's weakness will be bought up early next week.

Despite this week’s market tug of war, we are still sitting in the positive with gains in our recent trade this week.

Portfolio Update

• On Tuesday, buy-to-open Glu Mobile Inc. (NASDAQ: GLUU) June 19, 2020, $7 call (GLUU200619C00007000) up to $1.30 per contract or better, for the day.
• On Thursday, sell-to-close Cloudflare, Inc. (NYSE: NET) Feb. 21, 2020, $22.50 call (NET200221C00022500) at the market.

Right now we’re holding:

• Vistra Energy Corp. (NYSE: VST) April 17, 2020, $25 call (VST200417C00025000)
• Glu Mobile Inc. (NASDAQ: GLUU) June 19, 2020, $7 call (GLUU200619C00007000)

After-Action Report

• Cloudflare, Inc. (NYSE: NET) Feb. 21, 2020, $22.50 call

Date: Feb. 10, 2020
Outcome: 71% loss.
Notes: Our Hot Money signal was correct with shares of Cloudflare, Inc. (NYSE: NET) shooting 14% higher on Thursday. Unfortunately, the options contract I selected didn’t have enough time. That's why we weren’t able to close out for a double-digit gain. This one is on me, but you did the right thing salving some of the premium paid for a better opportunity.

As always, keep sending your questions and feedback to [email protected]

My team and I will have a new trade for you on Monday morning.

To your wealth, freedom and options!