OA Moves

I booked gains in LNKD calls and CRM calls today, initiated Dec QIHU calls, a TWTR yolo, and am waiting for a dip in Z here today.

More later,

OA

Starting Monday, December 9th, the privileged members of the After Hours with Option Addict society will spend the week participating in a crash course on Options trading. At the end of next week, you will have an in depth understanding of option trading mechanics, option pricing, and much, much, more.

Here is what I have planned for the week:

• Monday – Option Basics and Trade Mechanics
• Tuesday – Option Pricing and Greeks
• Wednesday – Option Volatility
• Thursday – Option Buying and Selling
• Friday – Option Strategies and Application

Even if you sign up for a month, and cancel later, you won’t get a better crash course on options anywhere else on the web. In other words, for less than the price of a share of $TWTR, you can become an expert in the world of options.

OA

Under the circumstances, this is an important day. Value is clearly migrating lower in stocks today. No sign of any big buyers yet, unless of course you are trading or invested in riskier equities here, which are so very impressive.

If you take into consideration, the last 3 months of trade, we were killing the market with these same stocks in September. All while the market traded lower for three straight weeks. When we bought the dip in October, I encouraged my readers to remove themselves of these stocks, and even encouraged many to short these stocks, as I claimed the market would demand quality and rotate out of these names.

As of two weeks ago, I pounded the table to buy these stocks. We started with monster gains, then gave some back as this idea has taken time to pan out. However, it is clear, that despite market weakness, these stocks are clearly outperforming again. It’s this repeatable pattern I am loaded up on and trying to capitalize on into year end.

I promised that TWTR would be the ultimate “chase” set-up once it cleared $42. This is my second largest position (basis $41ish) next to $FSLR. If you want my take on where it is going, read: http://ibankcoin.com/option_addict/2013/11/18/weekly-watchlist-13/

Cheers,
OA

Despite the fact that we’ve spent a ton of time in the last few weeks studying former market tops, one element to consider is market positioning during the process of market weakness.

For example, in the Great Social Media Bubble (not my take) of 2013, you wouldn’t hide in Social Media stocks for protection into a market correction. It would be like buying shares of CSCO, INTC, MSFT in Y2K to ride out market sell-offs.

You must be sitting there, in amazement, looking at how stocks like TWTR, FB, BIDU, FSLR, YGE, YELP, YOKU, P, LNKD (In other words, my book) are all trading higher today, while the rest of the market is selling off. This happens to most of the retail public to keep you from ever having an edge. They are doing their best to confuse you, transfer your money, and permanently remove you from this sport. I shed a tear each time I see this happen to you, because you could grind it out and master this game, but would rather get so close and turn away right at the worst possible time.

So act quickly. Sell off everything. Close what is left of your Zecco account. Cancel all your trading services. Run for the hills.

Myself? I’m sticking to my ongoing thesis, which is working like a charm today.

Not much value coming from me today, as I view most of today’s price movement as noise. With the market generally acting heavy here, its important to notice what stocks are diverging from the overall flow of the market. Based on what is moving today into broad market weakness, there is still an appetite for risk (TSLA, GOGO, SFUN, HLF, CLF, MNST, QIHU, SUNE, etc).

This was a point made yesterday in After Hours with Option Addict – rather than focus on market weakness, focus on what is working underneath the surface.

No new positions out of me today, but will probably book a couple gains and take off a loss.

OA