Dear Trader,

When you think this is it…

...The market snapbacks and roars to new all-time highs

As we come into the final weeks of summer, I thought we’d see a pullback.

Despite inflation at a 30-year high and nationwide shortages, the stock market is the only game in town right now. 

But that’s why opinions don’t pay in the stock market. 

And why you often hear the phrase, I rather be wrong than right. 

That is definitely on point because we were able to put two winners on the board today. 

Now, the CBOE Volatility Index (VIX), aka the “fear” index, is at 16 above our key 15 level.

So we continue to be a bullish regime and tip-toe higher. 

Now let’s talk shop.

Portfolio Update

On Monday:

Buy-to-open the PLTR September 10, 2021, $25/$27 call spread

On Tuesday:

No action.

On Wednesday:

Sell-to-close the HAIN September 17, 2021, $40/$44 call spread

Buy-to-open the ACM December 17, 2021, $70/$75 call spread

On Thursday:

No action.

On Friday:

Sell-to-close the BTU September 17, 2021, $15/$17 call spread

Sell-to-close the PLTR September 10, 2021, $25/$27 call spread

Right now, we’re holding:

• FCX September 17, 2021, $38/$41 call spread
• SNAP September 17, 2021, $80/$90 call spread
• YELL October 15, 2021, $7.50/$10 call spread
• JNPR September 17, 2021, $29/$31 call spread
• ACM December 17, 2021, $70/$75 call spread

Joshua’s Journal

This is my journal which is a debrief 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.

HAIN September 17, 2021, $40/$44

Outcome: Exited for a 34% loss.

Notes: We executed this perfectly. Unfortunately, we saw this position go from being in the black into the red. We followed our rules and exited before earnings. By sticking to the system we avoided the stock plunging by 10% the following day. 

But this is why I love options because owning the stock would’ve been a disaster. I took a shot and I was wrong. We move onto the next trade. 

PLTR September 10, 2021, $25/$27 call spread

Outcome: Exited for a 57% gain.

Notes: We executed this perfectly. We got the pop and since we are in shorter dated options, we must take our profits quickly. 

BTU September 17, 2021, $15/$17 call spread

Outcome: Exited for a 45% gain.

Notes: We executed this perfectly. This took a little while to develop, but we sold into strength and took out gains. 

Now it’s time to get my 7 mile run in before I head to the pool with a fresh jalapeno margarita - TGIF! 

I'll have a new trade on Monday.

To your wealth, freedom, and options!

Joshua M. Belanger