Happy New Year!
The broad market is seeing a shallow pullback as conflicts between U.S.-Iran flare-up.
Due to this overnight tension, oil started the session up more than 4% but quickly faded.
Gold is also higher and has been creeping back to it’s September highs, which seems to be going unnoticed.
This past summer before the big run-up in gold and silver, we were seeing a lot of activity with Hot Money signals flashing which provided great profit opportunities.
We aren’t seeing anything similar to that as of yet, but I think we could in the coming weeks.
The fear gauge for the S&P 500, known as the CBOE Market Volatility Index (VIX), at 14 - below our key level of 15 and means, bulls are still in control.
As we come into the last hour of today's trading session, we are seeing more selling pressure.
Next week is when things will pick back - let's see if the bulls fumble the ball.
In last week’s update, I mentioned that we were reaching a level of complicity that could set up for quick snapback and that I was buying a few puts in the S&P 500.
This wasn’t an official recommendation, but I did close those out.
Let’s talk about our first winning position in the new year.
On Monday, we bought to open Transocean Limited (NYSE: RIG) Jan. 24, 2020, $7 call up to $0.42 per contract or better.
On Friday, you sold to close Transocean Limited (NYSE: RIG) Jan. 24, 2020, $7 call at $0.52 per contract for a gain of 23%!
Also, our Editas Medicine, Inc. (NASDAQ: EDIT) Jan. 3, 2020, $45 call will expire worthless on today’s market close.
There’s nothing you need to do and this position will be removed from your account Monday morning.
Right now we don’t have any open positions.
Transocean Limited (NYSE: RIG) Jan. 24, 2020, $7 call
Editas Medicine, Inc. (NASDAQ: EDIT) Jan. 3, 2020, $45 call
As always, keep sending your questions and feedback to [email protected]
My team and I will have a new trade for you on Monday.
To your wealth, freedom and options!