8/24 Best Idea For The Week Ahead

From a price standpoint, the SPY just closed at its highest weekly close ever, that isn’t bearish. This uptrend we’ve been in for nearly a year hasn’t seen a close below the 21 week in nearly a year. This is a very healthy uptrend, there have been a couple blips along the way but the trend has been very strong. September is seasonally a weak month, but personally I’m not really a fan of seasonal data.

This week’s name is an activist name with considerable options flow pointing materially higher. Over the last couple weeks this name has seen nonstop buying pointing to possibly 30% higher and one of the greatest activists of all time just took a stake and these names eventually play out usually. You go back to April when I wrote up Match here after Elliott took that massive 9 figure stake and it took a couple months to right the ship but MTCH is finally moving in the right direction and that risk reversal you got paid to take back then still has 2 years to work. We will discuss similar options here for aggressive trades along with lower risk put spread sales.