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Option Addict

The first hit is always on the house.



It’s raining Chinese burritos in my office today. They’re catching on here, with massive moves in $ATHM, $SINA, $WB, and $YY. I’ve been on this theme for over a month, and it seems they’re just starting to get some attention. I’m going to book the rest of this $SINA move and likely place a couple more bets with the proceeds.

Two stocks that haven’t broken out yet: $SFUN and $TOUR. Keep them on your radar.

More later,



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Not only are we in a very low market to stock correlated environment, but we’re approaching WTF lows. Something I’ve warned about for a very long time, but I’ve never seen them as low as they are here.

What does this mean and why does this matter?

Like most, you’ll check with the indices to determine whether or not you should participate. However, in this environment that’s the worst thing you can be doing. Remember, the market is having no impact on what stocks are doing.

As I’ve said, with the massive trend and flows towards ETFs and Indexed products, I believe this to be part of the pain trade moving forward. I think that constant bid over the last two years also helped to mask a diseased market, in which the growth component absolutely crashed in 2014…yet the SPY stayed on a slow trend up. It helped to make participants feel good about the environment, despite the carnage that took place in individual stocks. Moving forward, I think the pain is owning the index or ETF while nearly every single stock out there has outperformed YTD.

So here we are, the rotational elements of the market have not looked healthier in as long as I can remember. Yet, because the indices never illustrated the destruction that took place underneath the surface, everyone is caught waiting for it. Truth is that they got it already. All the things I warned of last year…huge short position, lack of exposure, sentiment…whether the market belongs up here or not, the outcome was inevitable. Higher was never expected, and that’s exactly why we got it.

Booking some gains today, looking at $FCX, $TSLA, $VSLR, $BLOX.


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Not in the interest of self-gloss, but I absolutely nailed this market. Breakouts to bear traps, rotations to stock picks…all with conviction. I’m laying waste to those that were convinced that these massive gains and wins wouldn’t be here.

Now that I’ve said that, for those of you stopping by for the last day of the After Hours trial, I’ll set you up with a nice watchlist for next week, as I normally do on Fridays.

On the day, I booked a massive win in $CELG, gains in $GOOGL and will book the rest of my big $AAPL earnings win here before the bell.

I picked up $CTRP, $MBLY, $SSYS, and $PANW calls also.

To recap the After Hours with Option Addict sessions this week, I gave a pivotal call on Tuesday that the move lower was a bear trap, illustrating all the signals that suggested why this was the case.

I called out important rotational moves at the lows in the $XRT and $IYT this week. Those groups are of the next to break away from the trading ranges they’ve been in this year. Solar is on that list as well.

For those that joined me for the free week trial of After Hours with Option Addict, I can be a friend to you. Sign up for a membership and learn how to scout trades with us.

Have a great weekend,


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FireEye-6960I loathe this stock for what it did to me last year. Nonetheless, I ask of you to offer up a personal sacrifice to the stock gods as we approach the closing bell.

I’ve chosen to give up food, water and adderall for the remainder of market hours in exchange for a pleasant earnings report and market reaction.

Please do your part.

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I woke up and booked gains in my $SQ trade at the open. Great move in response to earnings. My $FSLR is getting waffle stomped here this morning, unfortunately. Otherwise, it would be an awesome day. Not sure what to make of this group just yet and may reduce some exposure by scratching out of $VSLR. Maybe taking a small loss in $SPWR or $RUN.

I used the $SQ proceeds to buy $FB calls damn near the low of the day today, and also averaged down my August $CRM position.

I’m stalking $HDP for earnings tonight, but will be watching $PCLN, $ANET, $IMPV and $CSOD tomorrow after their reports and will look to buy from those after the premiums have imploded. I’ll only take positions off minimal price reactions.

Small caps need to follow to days high here. If that happens, this starts to speed up a bit.


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Last night After Hours, I discussed two key groups that needed a bullish response coming into today. The $SPX led by example this year with the post Brexit sell. It was a fast sell to the middle of the range. Most were looking to trace back to the low end of the range, but as I’ve pointed out in many similar instances this year, you have to play moves to the middle.

To follow up, here are the two groups we discussed. Transports and Retail. How do you rate today’s reaction?

2016-08-03_12-32-15 2016-08-03_12-32-47

***A QUICK PROGRAMMING NOTE FOR After Hours with Option Addict TODAY***

It slipped my mind that I have an important appointment after the close, but it would have required me to leave a little early. Rather than cut the meeting short, I am opening the session and starting immediately after the close. For today only, please plan on meeting at 4PM ET rather than 4:30PM. Thanks for your understanding.

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