iBankCoin
The first hit is always on the house.
Joined Aug 2, 2009
1,847 Blog Posts

INAUGURATION ANXIETIES

I love events such as this where nobody has a real clue what the market will do, when the market might not do anything at all.

It’s high profile, and everyone has read something that has them spooked, so the state of most investors here is “willing to react.” Those are my favorite markets.

The seasonal inauguration trade is buy and hold for 10 days. That trade was profitable 10 of the last 12 times.

My only hope is that the light pop and fade this morning is enough to make people uneasy. Judging by the messages I’m getting, it might be enough to trigger some light pain trading.

Looking to book $SGY, $TEAM and maybe $SOHU today. I like $MRVL, $CELG, and $PRLB here.

Got any top tier set-ups?

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74 comments

  1. thehouse

    LABU maybe?

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  2. vandamme

    Jmei

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  3. baba

    $WDC – earnings play?

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  4. matt_bear

    my worst non-zero trade in the making so far are these $PYPL jan 41’s. i’ve been in them for over a month, cost basis around 50 cents. i’m holding out for a possible spike, but this thing is being pegged at 41.50

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  5. jason alford

    like PYPL here

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  6. jason

    also CEVA

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  7. philsy13

    Small fry: $GSAT

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  8. badduck

    $BITA maybe.

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  9. traderconfessions
    traderconfessions

    I rarely buy options but bought Jan20 expiry a couple weeks ago. Like watching paint dry. Lost 80 bucks. Only Fidelity wins once again.

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  10. purdy

    Maybe markets tend to do well after inaugurations because, once in office, uncertainty is mitigated and investors observe that not much has changed. It’ll will be interesting to see if this is the case with Trump.

    His speech sounded like he may have written it himself …it did not sound focused-grouped. If he is going to go off the reservation at all, it seems that healthcare, and specifically drug company profits, may be targeted. I’ve been, and remain short, IBB.

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  11. Beechoo

    got back into LABU a day early. lowered cost basis today. Hoping for some turn around next week.

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  12. ITALIAN STALLION

    Pain trade coming in. Sell the inauguration.

    All of those that bought at the top, it’s going to get interesting.

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  13. Z

    A bullish market near its all-time highs rarely if ever suddenly falls apart. That said – the pain trade might be for those with short on the brain that can’t help but short SPY and QQQ and so on at the first sign of weakness. Those people have been in pain for trying almost every day they have tried since the election and it is more likely to continue than not.

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  14. Z

    If all indices are indeed down by .7 percent or more by 10:30 AM – which is highly unlikely to happen – then I would tend to believe there might be a small multi-day flush as funds and institutions will sell “just to be safe” and to lock in some gains – using “the beginning of the Trump Presidency” as the excuse to take some profit.

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  15. Z

    BABA calls held through earnings?

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  16. traderconfessions
    traderconfessions

    Can anyone be confident in any market guess in these political circumstances? I think one has to make conservative bets until further notice.

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    • Z

      Ironically – what you just said means right now is probably a great buying opportunity. When it seems a person should be selling and/or conservative because of politics – that is when it is arguably usually the best to buy. Examples – all our “almost government shut downs” a few years ago, The Greece crisis of Summer 2015 (the best Internet technology buying opportunity in years and years), and recently – Brexit and other events.

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      • traderconfessions
        traderconfessions

        Not saying don’t enter market…. just not time to make a big bet.

        Stock like OLED.. classic wedge.. easy to manage vs a high-flying momo.

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  17. Z

    ?? Why should someone have bought OLED? Because it is an equity out of thousands and thousands and out of tens of thousands of traders – you recommended it?

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  18. Z

    And – to compare it to one of many “high-flying momos” – TSLA is up 14 percent in a month – OLED is up 2 percent.

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    • Option Addict

      You can’t compare what TSLA just did after it broke out. You can wait and see what OLED does after it breaks out.

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      • Option Addict

        Poor Zephler went puts for some reason.

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        • zephler

          OA – was able to get out of them for what I paid minus commission last week a few days before the meteoric rise. Thank you once again!

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          • zephler

            picked up $PRLB, more $MTCH and more $ATI…..$OLED honestly looked just too perfect to follow through on the pattern, that’s why I got the puts….stock dipped then firmed up, forcing me to sell (at luckily just the loss of commission) reminding me for the 100th time that I need to listen to the person I am paying to tell me what to do…thanks man. $PRLB has quite the interesting pattern here – like it!

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      • Z

        As you might remember – I was wrong on BABA – acknowledged it and switched sides. I have ridden TSLA off and on during this move and have a call position now. DDD is also a “high-flying momentum stock” as well as many others that could be continued to be listed that have done very well since the start of the year. My point was – the comment sounds as if it is demeaning those who have tried to play momentum stocks recently and failed and they should have tried something like OLED instead. The fact is – recently – many well-known momentum stocks have outperformed OLED.

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    • traderconfessions

      After that comment..nevermind.

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  19. zephler

    my put entries into $W and $OLED marked almost a perfect time to buy calls – I chickened out a day or two into the positions, but incredibly those days marked almost the exact time to buy calls – I am a great contrarian indicator for when I want to buy puts – lol

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  20. Jacked Rabbit

    Still in VALE. Looking to get into SFUN and CLF. Missed UEC, but will get into it below $1.53.

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  21. awanka

    Bought some long-dated TWTR calls. Giving sideways looks at QCOM. Someone please stop me.

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  22. matt_bear

    i’m really bored.

    MAKE OPTIONS GREAT AGAIN!

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  23. greenlander1

    OA,
    You in NTNX? Stalled for few days middle of the range and spiked up today. Looks ripe to break out

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  24. traderconfessions
    traderconfessions

    Like NTNX? …then take a look at TDD

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  25. aflow90

    OA I’ve been playing around with my choice of contract lately and wondered what you consider low delta. I used to trade 3-5% sized positions with deltas around 35ish. Now I’m doing 1-3% trades with deltas in the 10-20 range.

    I realize it’s personal preference and each trade will be different, but do you have a sweet spot you like for reference?

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  26. Cascadia

    Long ENT

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  27. thehouse

    Anyone buying ACIA? Seems dead here and a good spot

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  28. thehouse

    OA – What do you think of CBMX?

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  29. Beechoo

    Just went thru my twtr feed from last 5 days. Feels like mass majority is bearish. Time to pull the rug???

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  30. traderconfessions
    traderconfessions

    Not a bad place to buy WETF.

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  31. zephler

    OA – I am almost crying in happiness about $ATI – thank you so much man!!!!!!!!!!!!

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  32. traderconfessions

    OLED going nuts. Out of stock to lock in big gain. That was too easy.

    Guess buying LABU at open wasn’t best move but should level around here.

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