Stocks are coming back!

We’re taking a breather today in observance of Good Friday and will resume trading on Monday.

Broad markets continued to chip away at the March decline.

The unknown of the coronavirus is starting to become more clear.

Expected deaths from the coronaviruses continue to come in much lower than projected.

I have to admit...

I'm disappointed in myself how I allowed the experts to fool me and violate my civil liberties.

Small businesses and American families have been destroyed.

The government’s cure is always worse than the virus.

The panic is behind us, but now we have to pay the piper.

The fear gauge for the S&P 500, known as the CBOE Market Volatility Index (VIX) is at 41. The VIX is still elevated, which doesn’t mean we are out of the woods.

That's why we must keep our heads on a swivel.

We're still in a bear market.

This week’s swing allowed up to finally put green into our accounts and take a quick profit.

Let’s talk shop…

Portfolio Update

• Buy-to-open the SmileDirectClub, Inc. (NASDAQ: SDC) April 17, 2020, $4.50 call (SDC200417C00004500) up to $0.45 per contract or better, for the day.
• On Tuesday, Buy-to-open the Huazhu Group Limited (NASDAQ: HTHT) May 15, 2020, $25 put (HTHT200515P00025000) up to $0.80 per contract or better, for the day.
• On Wednesday, sell-to-close the SmileDirectClub, Inc. (NASDAQ: SDC) April 17, 2020, $4.50 call (SDC200417C00004500) and sell-to-close Huntington Bancshares Inc (NASDAQ: HBAN) May 15, 2020, $8 call (HBAN200515C00008000) at the market.

Right now, our open positions are:

• Vistra Energy Corp. (NYSE: VST) April 17, 2020, $25 call (VST200417C00025000)
• Glu Mobile Inc. (NASDAQ: GLUU) June 19, 2020, $7 call (GLUU200619C00007000)
• Nordsrom Inc. (NYSE: JWN) April 17, 2020, $10 put (JWN200417P00010000)
• Huazhu Group Limited (NASDAQ: HTHT) May 15, 2020, $25 put (HTHT200515P00025000)

After-Action Report

SmileDirectClub, Inc. (NASDAQ: SDC) April 17, 2020, $4.50 call (SDC200417C00004500)

Date: April 6, 2020

Reason: Our system flagged short-term under-market sentiment shift that would cause shares to spike higher.

Outcome: Exit at 22% gain.

Notes: It’s not a big winner, but it feels good to put some a win on the board. I thought this would spike higher. But we did the right thing selling into strength and taking our gains ahead of a long weekend.

Huntington Bancshares Inc (NASDAQ: HBAN) May 15, 2020, $8 call

Date: March 19, 2020
Reason: Our system flagged short-term under-market sentiment shift that would cause shares to spike higher.
Outcome: closed for a break-even scratch.
Notes: Getting back to even isn’t a win, but we did the right thing selling into strength. We can take the capital and use it for a better opportunity.

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

As I mentioned last week, we’re due for a big winner.

We put a win on the board, but stick the system and we will come out on top.

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