The Santa rally into Christmas lost momentum this week.
Stocks kicked off the week opening deep in the red, but was able to claw back some of those losses.
I’m not sure if this was a sell the news event or if Wall St. found this stimulus deal as a lump of coal in their stocking.
Either way, we were able to take another winning trade to the window.
Now, the fear gauge known as the CBOE Market Volatility Index (VIX) for the S&P 500 is at 22 and above our key level at 15 — indicating that a quick shakeout can happen as we saw on Monday.
In this market it’s important to take profits when you see them — and that is what we will continue to do.
If we ignore the noise and focus on our system, we’ll come out on top.
That’s the power of options and power of Hot Money!
Now let’s talk shop…
Sell-To-Close the Plug Power Inc. (NYSE: PLUG) Dec. 24, 2020, $35 call (PLUG201224C00035000) at the market.
Buy-To-Open the Cloudera, Inc. (NASDAQ: CLDR) Jan. 22, 2021, $15 call (CLDR210122C00015000) up to $0.90 per contract or better, for the day.
Buy-To-Open the Coty Inc. (NYSE: COTY) Jan. 22, 2021, $8 call (COTY210122C00008000) up to $0.75 per contract or better, for the day.
Right now, we’re holding:
- Sandstorm Gold Ltd. (NYSE: SAND) Jan. 15, 2021, $10 call (SAND210115C00010000)
- Axalta Coating Systems Ltd. (NYSE: AXTA) Jan. 15, 2021, $32 calls (AXTA210115C00032000)
- Buy-To-Open the Cloudera, Inc. (NASDAQ: CLDR) Jan. 22, 2021, $15 call (CLDR210122C00015000)
- Buy-To-Open the Coty Inc. (NYSE: COTY) Jan. 22, 2021, $8 call (COTY210122C00008000)
Let’s keep focused and let the market come to us.
If we stick to our system, we’ll come out ahead.
And I’ll be keeping you updated every step of the way.
One more quick programming note:
The market is open tomorrow — but just a half day since it’s Christmas Eve. Markets are closed Friday.
I’ll open up the mailbag next week and today is the last update.
I’ll have a new trade for you on Monday.
My team and I wish you a very Merry Christmas.
So giddy up, Dasher, Dancer, Prancer and Vixen!
Joshua M. Belanger