Stocks started hot on Monday and then fizzled.

We’re holding on to the gains from last week, but we’re taking a breather this week.

The news of the vaccine has started a rotation out of the lockdown trade into the reopening trade.

The Nasdaq 100 has been leading stocks higher in 2020, but now we’re seeing profit-taking from tech flow into the Russell 2000, which has been lagging.

Now, the fear gauge for the S&P 500, known as the CBOE Market Volatility Index (VIX) is at 22. These are levels that go back to February but also lets us know investors are still cautious.

We’ll continue to be nimble and lock in big, fast gains as we did this week in our WFC calls.

Portfolio Update

On Monday:

Sell-To-Close the Wells Fargo Company (NYSE: WFC) Nov. 20, 2020, $24.50 call (WFC201120C00024500) at the market.

Buy-To-Open the Sandstorm Gold Ltd. (NYSE: SAND) Jan. 15, 2021, $10 call (SAND210115C00010000) up to $0.20 per contract or better, for the day.

On Friday:

Buy-To-Open the Murphy Oil Corp. (NYSE: MUR) Dec. 18, 2020, $10 call (MUR201218C00010000) up to $0.50 per contract or better, for the day.

Right now, we’re holding:

• Hostess Brands Inc. (NASDAQ: TWNK) Dec. 18, 2020, $15 call (TWNK201218C00015000)
  
  
• Sandstorm Gold Ltd. (NYSE: SAND) Jan. 15, 2021, $10 call (SAND210115C00010000)
  
  
• Murphy Oil Corp. (NYSE: MUR) Dec. 18, 2020, $10 call (MUR201218C00010000)

Now we wait and let the market come to us.

Patience and persistence are key, and I’ll be keeping you updated every step of the way.

After-Action Report

Wells Fargo Company (NYSE: WFC) Nov. 20, 2020, $24.50 call (WFC201120C00024500)

Date: Nov. 02, 2020

Reason: Our system triggered a bullish signal after a $28 million Hot Money bet. This activity was a 230% surge in calls purchased and only profit is shares go higher.

Outcome: 260% gain.

Notes: We executed this perfectly by being patient and letting the market come to us. We took our gains on this position into strength and locked in some incredible gains. This is what I mean when I say greed is good, but we weren’t foolish. Enjoy the win and go enjoy the profits this weekend.

I’m looking forward to answering your most pressing questions this Wednesday.

If you want yours included, send it to [email protected].

Have a great weekend, and I’ll have a new trade for you on Monday.

To your wealth, freedom, and options!

Joshua M. Belanger