We’re kicking off 2021 with a BANG!
You know what they say… out with the old and in with the new.
I’m excited about the opportunities we’re going to see in 2021.
Emotions and the noise are at an extreme, but we’ll block that out and we focus on the signals.
Now, The CBOE Volatility Index (VIX), aka the “fear” index, is still above our key 15 levels, trading at 21. That means we’re going to see quick sell-offs like the one on Monday’s session.
That’s why it’s important to manage our winning trades, which is what we did this week.
Buy-to-open the Dana Incorporated (NYSE: DAN) Feb. 19, 2021, $21/$23 call vertical up to $0.70 per contract or better, for the day.
Sell-to-close the Dana Incorporated (NYSE: DAN) Feb. 19, 2021, $21/$23 call vertical at the market.
Buy-to-open the Altria Group, Inc. (NYSE: MO) Jan. 29, 2021, $43 call (MO210129C00043000) up to $0.61 per contract or better, for the day.
Sell-to-close the Tower Semiconductor Ltd. (NASDAQ: TSEM) Jan. 15, 2021, $28 call (TSEM210115C00028000) at the market.
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 call (AXTA210115C00032000)
- Altria Group, Inc. (NYSE: MO) Jan. 29, 2021, $43 call (MO210129C00043000)
- Cloudera, Inc. (NASDAQ: CLDR) Jan. 22, 2021, $15 call (CLDR210122C00015000)
- Coty Inc. (NYSE: COTY) Jan. 22, 2021, $8 call (COTY210122C00008000)
This is our debriefing of every trade closed or expired to analyze what happened, why it happened and how it can be done better — like what the military uses after missions.
Dana Incorporated (NYSE: DAN) Feb. 19, 2021, $21/$23 call vertical
Date: January 05, 2021
Reason: Our system triggered a bullish signal triggered after a new $20 million Hot Money bet, which is a 4,500% surge in new call options purchased.
Outcome: 46% gain.
Notes: Options are a great tool because we can reduce our risk and also be more strategic. Because of the sharp pull back, volatility was elevated. Even if we were right on direction, implied volatility typically comes in. By using a call vertical, the short strike would help offset that loss. Unfortunately, not everyone was able to take advantage of this trade because their brokerage didn’t approve them for level II. That falls on me for not having everyone prepared. Don’t let it get you down, I’ll make it up.
Tower Semiconductor Ltd. (NASDAQ: TSEM) Jan. 15, 2021, $28 call (TSEM210115C00028000)
Date: December 28, 2020
Reason: Our system triggered a bullish signal after a new $65 million New Money bet, which is a 600% surge in new call options purchased.
Outcome: 16% gain.
Notes: We played this perfectly by selling into a big move yesterday. Some of you reported that you exited at higher prices, congratulations!
Let’s keep focused and let the market come to us.
And I’ll be keeping you updated every step of the way.
Have a great weekend, and I’ll have a new trade for you on Monday.
To your wealth, freedom, and options!
Joshua M. Belanger