1/6 Recap

Well that was quick, we’re back in a bullish uptrend. We cleared the 8 and 21 ema today alone with the the 50 day in one huge gap up. As you saw from my positioning the last few sessions I wasn’t super concerned and was really pressing the leverage, but the reality is the only way to avoid big downturns in the market is to always be cautious when the 21 ema breaks, that’s literally all you can do. Keep your long term positions but reduce leverage and take off short term trades when that happens and you will never get punched in the mouth. In the case of our market, the last 3 breaks of the 21 ema have been resolved in a matter of sessions because seemingly every small dip is an incredible buying opportunity. I still am in the camp this year as a whole won’t be anything special, as we saw this morning on a Trump tweet regarding tariffs the /NQ sold off 100 points, expect alot more of that with Donald taking over in 2 weeks. For now though as we resume an uptrend, leverage can be employed again. Earnings season begins this week, but most of the important names won’t report for 1-2 weeks. That combined with the Trump inauguration were the reasons I wasn’t too concerned even though we were below the 50 day. I felt like we would rise into the inauguration before things got choppy.

Recent Trades

BP - I highlighted this one twice recently. In the 11/26 recap here and the 12/5 recap here I flagged the large buy of BP calls targeting February, the name is up almost 10% since to 31.xx and for a name like this, that is a huge move in a month. The calls here were all short term February/March ones.

If you had been watching the database since that initial trade, they have been nonstop loading BP calls and short puts repeatedly look at all these trades I logged since. Huge volume and it finally paid off.

My Open Book

Posting my book so far this year has been great, I think all of you can see that everytime a new trade pops up in here you can verify it with the option volumes. I think being transparent about what I’m doing is key to keeping your trust but I do reiterate I am a little wild please do not copy what I do with all this leverage. As for questions about this stuff its very simple I see put sales in the data and usually just go at or below them, I’m not a world beater, I just trust that the firms doing the research to place XYZ put sales are doing so with the intention of profiting, when I combine their work with what I’m seeing in the charts, if I’m comfortable, I add it. That’s all.